John Wilson, a sole proprietor, has the following projected figures for next year:
What is the contribution margin ratio? (Note: Round answer to three decimal places.)
A) 0.250
B) 1.429
C) 0.429
D) 3.333
E) 0.700

Question

John Wilson, a sole proprietor, has the following projected figures for next year:  
 What is the contribution margin ratio? (Note: Round answer to three decimal places.)
A) 0.250 
B) 1.429 
C) 0.429 
D) 3.333 
E) 0.700

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
Contribution Margin Ratio = Contribution Margin per Unit / Price
Contribution margin ratio = $50 / $200 = 0.250

John Wilson, a Sole Proprietor, Has the Following Projected Figures