The Cumberland Company Provides the Following Information What Is the Contribution Margin Ratio for Cumberland?
A)0

The Cumberland Company provides the following information: $\begin{array} { l } \text {Sales (250,000 units) }&\$625,000\\ \text {Manufacturing costs: }&\\ \text {Variable }&212,500\\ \text { Fixed}&37,500\\ \text {Selling and administrative costs: }&\\ \text {Variable }&100,000\\ \text { Fixed}&25,000\\\end{array}$
What is the contribution margin ratio for Cumberland?

A) 0.16
B) 0.76
C) 0.50
D) 0.34