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tiny-mole [99]
3 years ago
13

Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat

io
Business
1 answer:
KATRIN_1 [288]3 years ago
8 0

Answer:

Contribution margin ratio= 0.42

Explanation:

Giving the following information:

Bryce Co. sales are $801,000

Variable costs are $465,100

Operating income is $287,000.

<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

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