Garcia's,a company that sells fishing nets,provides the following information about its product: $$\begin{array} { | l | r | }
\hline \text { Targeted operating income } & \$ 54,000 \
\hline \text { Sales price per unit } & 10.00 \
\hline \text { Variable cost per unit } & 1.50 \
\hline \text { Total fixed costs } & 120,000 \
\hline
\end{array}$$ What is the contribution margin ratio? (Round any intermediate calculations and your final answer to two decimal places. )

Question

Garcia's,a company that sells fishing nets,provides the following information about its product: $$\begin{array} { | l | r | } 
\hline \text { Targeted operating income } & \$ 54,000 \
\hline \text { Sales price per unit } & 10.00 \
\hline \text { Variable cost per unit } & 1.50 \
\hline \text { Total fixed costs } & 120,000 \
\hline
\end{array}$$ What is the contribution margin ratio? (Round any intermediate calculations and your final answer to two decimal places. )

Quizplus · Accepted Answer

Contribution margin ratio = (Sales price per unit - Variable cost per unit) / Sales price per unit= (10.00 - 1.50) / 10.00= 0.85= 85.00%

Garcia's,a Company That Sells Fishing Nets,provides the Following Information About