Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $270,000.What is Boswell's contribution margin ratio?
A)68%.
B)45%.
C)32%.
D)55%.

Question

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The Answer of Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $270,000.What is Boswell's contribution margin ratio?
A)68%.
B)45%.
C)32%.
D)55%.

Boswell Company Reported the Following Information for the Current Year