A company's product sells for $150 and has variable costs of $60 associated with the product. What is itscontribution margin ratio?A.10%B.40%C. 60%D. 90%

Formula: Contribution margin ratio = ( Contribution margin / Sales ) x 100

Answered: A company's product sells for $150 and…

A company's product sells for $150 and has variable costs of S60 associated with the product. What is its contribution margin ratio? A.10% B.40%

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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Question

A company's product sells for $150 and has variable costs of $60 associated with the product. What is its
contribution margin ratio?
A.10%
B.40%
C. 60%
D. 90%

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