Gong by the reports of the recent
study of Chilean bus drivers, if Chilean bus drivers are paid by the number of
passengers they transport and Colombian bus drivers are paid by the hour, it
means that Chilean drivers have more incentives to work, and have higher productivity
than Colombian drivers. We can therefore conclude that Chilean bus drivers
likely have a higher standard of living than Colombian bus drivers.
Answer:
A) $38,650; 48.31%
Explanation:
The computation of the contribution margin and the contribution margin ratio is shown below:
Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense
= $80,000 - $22,000 - $19,350
= $38,650
The variable cost is Cleaning Supplies Used + wages expense
And, the contribution margin ratio equals to
= (Contribution margin ÷ sales) × 100
= ($38,650 ÷ $80,000) × 100
= 48.31%
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