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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%
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