Psari's,a company that sells fishing nets,provides the following information about its product: $\begin{array}{|l|r|}
\hline\text { Targeted operating income } & \$ 54,000 \
\hline \text { Sales price per unit } & 10,00 \
\hline \text { Variable cost per unit } & 1.50 \
\hline \text { Total fixed costs } & 120,000 \
\hline
\end{array}$ What is the contribution margin ratio? (Round any intermediate calculations and your final answer to two decimal places.)

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales price per unit - Variable cost per unit) / Sales price per unit. In this case, the contribution margin ratio is (10.00 - 1.50) / 10.00 = 0.85, or 85.00%.

Psari's,a Company That Sells Fishing Nets,provides the Following Information About