Lee Company's sales are $525,000, variable costs are 53% of sales, and operating income is $19,000. The contribution margin ratio is

Name: Lee Company's sales are $525,000, variable costs are 53% of sales, and operating income is $19,000. The contribution margin ratio is
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales - Variable Costs) / Sales. Given that variable costs are 53% of sales, the contribution margin ratio is 100% - 53% = 47%.

Lee Company's Sales Are $525,000, Variable Costs Are 53% of Sales