Reference: 08-08
Janet Company produces a game that sells for $17 per game. Variable expenses are $9 per game and fixed expenses total $172,000 annually.
-The contribution margin ratio is closest to?
A)1.9%.
B)47.1%.
C)2.1%.
D)52.9%.

Question

Quizplus · Accepted Answer

Contribution margin ratio = (Selling price per unit - Variable expenses per unit) / Selling price per unit= ($17 - $9) / $17= $8 / $17= 0.4706= 47.06%

Reference: 08-08 Janet Company Produces a Game That Sells for $17 Per