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What is the company contribution margin ratio as percentage

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Question - The following is Allison Corporation's contribution format income statement for last month. The company has no beginning or ending inventories. The company produced and sold 10,000 units last month.

Sales $800,000

Less variable expenses 300,000

Contribution margin 500,000

Less fixed expenses 400,000

Net income $100,000

Required - What is the company's contribution margin ratio as a percentage?

Reference no: EM133062380

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