Solution Library

Calculate Contribution Margin Ratio

Question

A manufacturer of cedar shingles has supplied the following data:

Bundles of cedar shakes produced and sold

 

     250,000

Sales revenue

 

$2,025,000

Variable expense:

   

Variable manufacturing expense

$974,000

 

Variable selling and administrative expense

259,000

1,233,000

Contribution margin

 

   792,000

Fixed expense:

   

Fixed manufacturing expense

511,000

 

Fixed selling and administrative expense

270,000

   781,000

Net operating income

 

   $11,000

The company's contribution margin ratio is closest to:

a. 31%

b. 69%

c. 61%

d. 39%

 

Summary

The question belongs to Accounting and it discusses about calculation of contribution margin ratio.

Total Word Count 11

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.