What is the contribution margin ratio? (I need the steps to get to the answer)38%, 26.8% or 11.8% If sales are $425,000, variable costs are 62% of sales, and income from operations is $50,000, what is the contribution margin ratio?

Given: Cost of sales = $ 425,000 Variable cost = 62 % Income = $ 50,000

Answered: If sales are $425,000, variable costs…

If sales are $425,000, variable costs are 62% of sales, and income from operations is $50,000, what is the contribution margin ratio?

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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What is the contribution margin ratio? (I need the steps to get to the answer)

38%, 26.8% or 11.8%

If sales are $425,000, variable costs are 62% of sales, and income from operations is $50,000, what is the contribution margin ratio?

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