Answer:
31.79%
Explanation:
Kilograms produced and sold = 420,000
Sales revenue = $ 1,890,000
Variable manufacturing expense = $ 948,000
Fixed manufacturing expense = $ 242,000
Variable selling and administrative expense = $ 341,000
Fixed selling and administrative expense = $ 208,000
Net operating income = $ 151,000
Total variable cost:
= Variable manufacturing expense + Variable selling and administrative expense
= $ 948,000 + $ 341,000
= $1,289,000
Contribution margin:
= Sales - Total variable cost
= $ 1,890,000 - $1,289,000
= $601,000
Contribution margin ratio:
= (Contribution ÷ sales) × 100
= ($601,000 ÷ $1,890,000) × 100
= 0.3179 × 100
= 31.79%
