The contribution margin ratio for Duncan Enterprises is

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as the contribution margin divided by sales. 
We are not given the contribution margin or sales figures, so we cannot calculate the ratio directly. 
However, we can eliminate choices (C) and (D) as they are greater than 100%, which is not possible. 
Therefore, the only remaining option is (B), which must be less than 50%. This implies that the company has high variable costs relative to its sales revenue.

The Contribution Margin Ratio for Duncan Enterprises Is