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

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

Question

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

Quizplus · Accepted Answer

Variable expense ratio = Variable expenses ÷ Sales = $405,000 ÷ $540,000 = 75%

Kelsay Corporation Has Provided the Following Contribution Format Income Statement