Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:

-The Bartwell Company contribution margin ratio is
A)0.944:1.
B)4.701:1.
C)3.728:1.
D)0.732:1.
E)0.213:1.

Question

Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:
 
-The Bartwell Company contribution margin ratio is
A)0.944:1. 
B)4.701:1. 
C)3.728:1. 
D)0.732:1. 
E)0.213:1.

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales - Variable Costs) / Sales. A ratio of 0.732:1 indicates that 73.2% of sales revenue is available to cover fixed costs and contribute to profit.

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