The variable expense per unit is $12 and the selling price per unit is $40.Then the contribution margin ratio is 70%.

Name: The variable expense per unit is $12 and the selling price per unit is $40.Then the contribution margin ratio is 70%.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Contribution Margin Ratio = (Selling Price per unit - Variable Expenses per unit) / Selling Price per unit

= (40 - 12) / 40

= 28 / 40

= 0.7 or 70%

Therefore, the statement is true.

The Variable Expense Per Unit Is $12 and the Selling