The selling price that would maintain the same contribution margin ratio as last year is
A)$9.00.
B)$8.25.
C)$10.00.
D)$9.50.

Question

Quizplus · Accepted Answer

The contribution margin ratio is calculated as (Selling Price - Variable Cost) / Selling Price. To maintain the same ratio, the selling price must be adjusted proportionally to any changes in variable costs or remain the same if costs are unchanged. Without additional data, $10.00 is likely the original selling price maintaining the ratio.

The Selling Price That Would Maintain the Same Contribution Margin