If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is the contribution margin ratio? Oa. 69% Оb. 35% Oc. 65% Od. 31%

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is the contribution margin ratio?
Oa. 69%
Оb. 35%
Oc. 65%
Od. 31%
Transcribed Image Text:If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is the contribution margin ratio? Oa. 69% Оb. 35% Oc. 65% Od. 31%
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