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What is the contribution margin ratio

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Question - The following information is available for Bluewood Corporation for a sales volume of 500 stereo speakers for the past month:

Total Per Unit

Sales $225,000 $450

Less: variable expenses 80,000 160

Contribution margin $145,000 $290

Less: fixed expenses $ 35,000

Net operating income $110,000

What is the contribution margin ratio?

12.0%

30.0%

40.0%

64.4%

Reference no: EM132048857

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