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...
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What is the contribution margin ratio? ? Financial accounting question

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%
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%
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