question archive For Dye Company, at a sales level of 5,000 units, total sales are $75,000, total variable expenses are 42,000 and total fixed expenses are $21,000
For Dye Company, at a sales level of 5,000 units, total sales are $75,000, total variable expenses are 42,000 and total fixed expenses are $21,000
Subject:AccountingPrice:2.86 Bought3
For Dye Company, at a sales level of 5,000 units, total sales are $75,000, total variable expenses are 42,000 and total fixed expenses are $21,000. What is the contribution margin ratio
a) 44%
b) 16%
c) 56%
d) 156%
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
contribution margin ratio = (sales - variable costs)/sales
contribution margin ratio = (75,000 - 42,000)/75,000
contribution margin ratio = 0.44
contribution margin ratio = 44%
