Calculate the contribution margin ratio? Velocity Enterprises reported sales of $825,000 for the period. The company'svariable costs are 61% of sales, and its total fixed costs amount to $130,000. Calculatethe contribution margin ratio.A) 39%B) 41%C) 37%D) 44%

Step 1: Definition of Contribution Margin RatioThe Contribution Margin Ratio (CMR) is a financial…

Answered: Velocity Enterprises reported sales of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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General Accounting
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Velocity Enterprises reported sales of $825,000 for the period. The company's variable costs are 61% of sales, and its total fixed costs amount to $130,000. Calculate the contribution margin ratio. A) 39% B) 41% C) 37% D) 44%