Answered: If sales are $500,000, variable costs…

If sales are $500,000, variable costs are 200,000, and fixed costs are 260,000, what is the contribution margin percentage? a. 52% b. 48% c. 40% d. 60%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...

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Question

10. If sales are $500,000, variable costs are 200,000, and fixed costs are 260,000, what is the contribution margin percentage?

a. 52%

b. 48%

c. 40%

d. 60%

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