Lee Industry sales are $525,000,variable costs are 53% of sales,and operating income is $19,000.What is the contribution margin ratio?

Name: Lee Industry sales are $525,000,variable costs are 53% of sales,and operating income is $19,000.What is the contribution margin ratio?
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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 Industry Sales Are $525,000,variable Costs Are 53% of Sales,and