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The following is Corporation A's contribution format income statement for last month:
Sales$1,000,000
Less: variable expenses 700,000
Contribution margin 300,000
Less: fixed expenses 180,000
Operating income $120,000
Problem 1: The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. What is the company's contribution margin ratio?
Select one:
a. 250%
b. 30%
c. 70%
d. 150%
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