Cherry Wood Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r }
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The contribution-margin ratio is _____.
A)22.5%
B)29.0%
C)40.6%
D)77.5%

Question

Cherry Wood Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The contribution-margin ratio is _____.
A)22.5%
B)29.0%
C)40.6%
D)77.5%

Quizplus · Accepted Answer

The Answer of Cherry Wood Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The contribution-margin ratio is _____.
A)22.5%
B)29.0%
C)40.6%
D)77.5%