Last year,RC Rancho's revenue was $120,000,000,variable costs were $90,000,000 and fixed costs were $15,000,000.RC Rancho's contribution margin ratio was 25 percent.

Question

Quizplus · Accepted Answer

Contribution margin ratio is calculated as (Revenue - Variable costs) / Revenue.

Using the given values:

Contribution margin ratio = (120,000,000 - 90,000,000) / 120,000,000

Contribution margin ratio = 0.25 or 25%

Therefore, the statement is true.

Last Year,RC Rancho's Revenue Was $120,000,000,variable Costs Were $90,000,000 and Fixed