Kelsay Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

-The contribution margin ratio is closest to:
A) 75%
B) 67%
C) 25%
D) 33%

Question

Kelsay Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
 
-The contribution margin ratio is closest to:
A) 75% 
B) 67% 
C) 25% 
D) 33%

Quizplus · Accepted Answer

CM ratio = Contribution margin ÷ Sales = $135,000 ÷ $540,000 = 25%

Kelsay Corporation Has Provided the Following Contribution Format Income Statement