Calculate company contribution margin ratio

Reference no: EM13824517

Problem-

A manufacturer of cedar shingles has supplied the following data:

Bundles of cedar shakes produced and sold		250,000
Sales revenue		$2,025,000
Variable expense:
Variable manufacturing expense	$974,000
Variable selling and administrative expense	259,000	1,233,000
Contribution margin		792,000
Fixed expense:
Fixed manufacturing expense	511,000
Fixed selling and administrative expense	270,000	781,000
Net operating income		$11,000

The company's contribution margin ratio is closest to:

Additional information-

The problem belongs to Basic Accounting and it discuss about calculation of contribution margin ratio.

Reference no: EM13824517

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