Stauffer Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. The variable expense ratio is closest to:
A) 60%
B) 40%
C) 67%
D) 33%

Question

Stauffer Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.  The variable expense ratio is closest to:
A) 60% 
B) 40% 
C) 67% 
D) 33%

Quizplus · Accepted Answer

Variable expense ratio = Variable expenses ÷ Sales = $192,000 ÷ $320,000 = 60%

Stauffer Corporation Has Provided the Following Contribution Format Income Statement