Use the information below to answer the following question(s).
Anthony Office Supplies sells refills on printer ink cartridges for $16 per refill. Variable costs are $4 per refill. Fixed costs are $2,000 per month.
-What is the contribution margin ratio for the printer ink cartridge refills at Anthony Office Supplies?

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Selling Price - Variable Cost) / Selling Price. Here, it is ($16 - $4) / $16 = $12 / $16 = 0.75 or 75%.

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