5) Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio?а.43%b.30%c.70%d.Cannot be determined because amounts are not expressed per unit.

Answered: 5) Sales are $500,000 and variable…

5) Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio? а. 43% b. 30% с. 70% d. Cannot be determined because amounts are not expressed per unit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

5) Sales are $500,000 and variable costs are $350,000. What is the contribution margin ratio?
а.
43%
b.
30%
c.
70%
d.
Cannot be determined because amounts are not expressed per unit.

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