Sterling Manufacturing has a product with a selling price per unit of $120, a unit variable cost of $40, and total monthly fixed costs of $400,000. What is Sterling Manufacturing's contribution margin ratio? a. 33.3% b. 66.7% c. 100% d. 300%

Sterling Manufacturing has a product with a selling price per unit of $120, a unit variable cost of $40, and total monthly fixed costs of $400,000. What is Sterling Manufacturing's contribution margin ratio? a. 33.3% b. 66.7% c. 100% d. 300%

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 of this accounting question?

Sterling Manufacturing has a product with a selling price per unit of $120, a unit variable
cost of $40, and total monthly fixed costs of $400,000.
What is Sterling Manufacturing's contribution margin ratio?
a. 33.3%
b. 66.7%
c. 100%
d. 300%

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