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SolaraTech Corp. has total sales of $950,000. Variable costs are 62% of sales, and fixed costs are $180,000. What is the contribution margin ratio? a. 40% b. 38% c. 44% d. 36%

SolaraTech Corp. has total sales of $950,000. Variable costs are 62% of sales, and fixed costs are $180,000. What is the contribution margin ratio? a. 40% b. 38% c. 44% d. 36%

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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SolaraTech Corp. has total sales of $950,000. Variable costs are 62% of sales, and fixed costs are $180,000. What is the contribution margin ratio? a. 40% b. 38% c. 44% d. 36%
Transcribed Image Text:SolaraTech Corp. has total sales of $950,000. Variable costs are 62% of sales, and fixed costs are $180,000. What is the contribution margin ratio? a. 40% b. 38% c. 44% d. 36%
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