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xeze [42]
3 years ago
7

LO 3.1A company’s product sells for $150 and has variable costs of $60 associated with the product. What is its contribution m

argin ratio?
10%
40%
60%
90%
Business
1 answer:
soldier1979 [14.2K]3 years ago
4 0

Answer:

60%

Explanation:

Contribution margin ratio is calculated by dividing the contribution margin amount by sales.

Contribution margin is sales less variable cost to produce a product.

Sale price                      150

Variable cost                (60)

Contribution margin     90

Contribution margin ratio: 90 / 150 = 60%

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