Sales amount to $925,000, variable costs are 62% of sales, and fixed cost is $145,000. What is the contribution margin ratio? a. 38% b. 35% c. 42% d. 40%
Sales amount to $925,000, variable costs are 62% of sales, and fixed cost is $145,000. What is the contribution margin ratio? a. 38% b. 35% c. 42% d. 40%
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
Related questions
Question
Hi expert please give me answer general accounting question

Transcribed Image Text:Sales amount to $925,000, variable costs are 62% of sales, and fixed cost is
$145,000. What is the contribution margin ratio?
a. 38%
b. 35%
c. 42%
d. 40%
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College

Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College