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What is the contribution margin ratio for bluewood corp

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Reference no: EM132783259

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

Problem 1: What is the contribution margin ratio?

a. 12.0% b. 30.0% C. 40.0% d. 64.4%

Reference no: EM132783259

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