At the proposed increased selling price of $190 per unit, the contribution margin ratio is:

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as the contribution margin divided by the selling price. The contribution margin is the difference between the selling price and the variable cost per unit. In this case, the variable cost per unit is not given, so we cannot calculate the contribution margin. However, we can calculate the contribution margin ratio as follows:Contribution margin ratio = Contribution margin / Selling price= (Selling price - Variable cost per unit) / Selling price= ($190 - Variable cost per unit) / $190Since the variable cost per unit is not given, we cannot calculate the exact contribution margin ratio. However, we can see that the contribution margin ratio will be greater than 31.6% (since the selling price is greater than the variable cost per unit) and less than 68.4% (since the contribution margin ratio cannot be greater than 100%). Therefore, the only possible answer is B) 31.6%.

At the Proposed Increased Selling Price of $190 Per Unit