Extra Extra Newspaper Company had the following results this year. What is Extra Extra's contribution margin ratio?

Question

Extra Extra Newspaper Company had the following results this year.  What is Extra Extra's contribution margin ratio?

Quizplus · Accepted Answer

To calculate the contribution margin ratio, we need to divide the contribution margin (revenue - variable expenses) by the total revenue. Unfortunately, we do not have the revenue or variable expenses information in the given results. Therefore, we cannot calculate the exact contribution margin ratio. However, we can eliminate choices A and D as they do not make sense as a percentage or a monetary value for the contribution margin ratio. 
Based on the remaining choices, B is the best guess as it is the most likely contribution margin ratio for a newspaper company. The contribution margin ratio for a newspaper company is typically between 30% to 40% as they have relatively high fixed costs (e.g. printing, distribution) and low variable costs (e.g. salaries and wages for journalists).

Extra Extra Newspaper Company Had the Following Results This Year