For Pierce Company, sales is $500,000, variable expenses are $330,000, and fixed expenses are $140,000.Pierce's contribution margin ratio is
A)10%.
B)28%.
C)34%.
D)66%.

Name: For Pierce Company, sales is $500,000, variable expenses are $330,000, and fixed expenses are $140,000.Pierce's contribution margin ratio is A)10%. B)28%. C)34%. D)66%.
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Question

Quizplus · Accepted Answer

Contribution Margin Ratio = (Sales - Variable Expenses) / Sales= ($500,000 - $330,000) / $500,000= $170,000 / $500,000= 0.34 or 34%

For Pierce Company, Sales Is $500,000, Variable Expenses Are $330,000