Bramble Corp. has a product with a unit selling price of $100, the unit variable cost is $40, and the total monthly fixed costs are $300000. What is Bramble's contribution margin ratio? O 150% O 60% 40% O 250%

Bramble Corp. has a product with a unit selling price of $100, the unit variable cost is $40, and the total monthly fixed costs are $300000. What is Bramble's contribution margin ratio? O 150% O 60% 40% O 250%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

H6.

Bramble Corp. has a product with a unit selling price of $100, the unit variable cost is $40, and the total monthly fixed costs are
$300000. What is Bramble's contribution margin ratio?
150%
60%
40%
O 250%

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