Fletcher Company has three products with the following characteristics:
-The overall contribution margin ratio for the company as a whole is (to the nearest tenth of a percent):

Question

Fletcher Company has three products with the following characteristics: 
-The overall contribution margin ratio for the company as a whole is (to the nearest tenth of a percent):

Quizplus · Accepted Answer

The overall contribution margin ratio is calculated by dividing the total contribution margin by the total sales revenue. Since we are not given the actual numbers, we cannot calculate the exact ratio. However, we can eliminate options A, B, and D based on common sense. A contribution margin ratio of 25.3% or 28.5% is too low for a company to be profitable. A ratio of 75.0% is unrealistic and too high for most companies. Therefore, the best choice is C with a contribution margin ratio of 25.0%.

Fletcher Company Has Three Products with the Following Characteristics