Use the information below to answer the following question(s).
Express Bus Company operates a bus route that takes passengers from Cleveland to Chicago every day. Assume the bus tickets sell for $50 per rider; the bus line's variable costs are $35 per rider; and its fixed costs are $75,000 each month.
-What is the contribution margin ratio at Express Bus Company?

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Sales Price per Unit - Variable Cost per Unit) / Sales Price per Unit. Here, it's ($50 - $35) / $50 = $15 / $50 = 0.30 or 30%.

Use the Information Below to Answer the Following Question(s)