Answer the following questions using the information below:
Nancy's Niche sells a single product.8000 units were sold resulting in $80 000 of sales revenue,$20 000 of variable costs,and $10 000 of fixed costs.
-The contribution margin percentage is:
A)25.0%.
B)12.5%.
C)37.5%.
D)75.0%.

Question

Quizplus · Accepted Answer

The contribution margin is calculated as (Sales Revenue - Variable Costs) / Sales Revenue. Here, it is ($80,000 - $20,000) / $80,000 = $60,000 / $80,000 = 0.75 or 75%.

Answer the Following Questions Using the Information Below