If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, the contribution margin ratio is
A)45%
B)55%
C)62%
D)32%

Name: If sales are $820,000, variable costs are 55% of sales, and operating income is $260,000, the contribution margin ratio is A)45% B)55% C)62% D)32%
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales - Variable Costs) / Sales. Given that variable costs are 55% of sales, the contribution margin ratio is 100% - 55% = 45%.

If Sales Are $820,000, Variable Costs Are 55% of Sales