Answer:
The correct answer is D: 41%
Explanation:
Giving the following information:
Bundles of cedar shakes produced and sold 257,000
Sales revenue $ 2,081,700
Variable manufacturing expense $ 974,700
Fixed manufacturing expense $ 503,000
Variable selling and administrative expense $ 259,700
Fixed selling and administrative expense $ 289,000
Contribution margin ratio= (selling price - unitary variable cost) / selling
price
Selling price= sales / units sold= 2081700/257000= $8.1
Total variable cost= Variable manufacturing expense + Variable selling and administrative expense= 974,700 + 259,700= $1,234,400
Unitary variable cost= 1,234,400/257000= 4.80
Contribution margin ratio= (8.1 - 4.80)/8.1= 0.407= 40.7%=41%
