If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what is the contribution margin ratio? Оа. 76% Оb. 72% Ос. 28% Od. 24%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what is the contribution margin ratio?
Oa. 76%
Оb. 72%
Ос. 28%
Od. 24%
Transcribed Image Text:If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what is the contribution margin ratio? Oa. 76% Оb. 72% Ос. 28% Od. 24%
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9781337912020
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Publisher:
South-Western College Pub