Knox Corp.has a selling price of $20,variable costs of $14 per unit,and fixed costs of $25,000.If Knox sells 12,000 units,the contribution margin ratio will equal:
A)$60,000
B)30%
C)70%
D)10.4%

Name: Knox Corp.has a selling price of $20,variable costs of $14 per unit,and fixed costs of $25,000.If Knox sells 12,000 units,the contribution margin ratio will equal: A)$60,000 B)30% C)70% D)10.4%
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Question

Quizplus · Accepted Answer

The contribution margin per unit is $20 - $14 = $6. The contribution margin ratio is ($6 / $20) * 100% = 30%.

Knox CorpHas a Selling Price of $20,variable Costs of $14 Per