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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. 31%

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. 31%

Managerial Accounting
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...
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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. 31%
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. 31%
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