Kingston Company Sells Its Product for $200 Per Unit What Is Kingston Company's Contribution Margin Ratio?
A) 30%
B)

question 5

Multiple Choice

Kingston Company sells its product for $200 per unit.The company's accountant provided the following cost information: $\begin{array}{|l|l|}\hline \text { Manufacturing costs } & \$ 25,000+40 \% \text { of sales } \\\hline \text { Selling costs } & \$ 10,000+20 \% \text { of sales } \\\hline \text { Administrative costs } & \$ 15,000+10 \% \text { of sales } \\\hline\end{array}$ What is Kingston Company's contribution margin ratio?

• A) 30%
• B) 15%
• C) 35%
• D) 20%

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Definitions:

Asset (A)

Resources owned by a company that have economic value and can provide future benefits.

Liability (L)

Financial obligations, debts, or responsibilities the company owes to others, measurable in monetary terms.

Statement of Stockholders' Equity

A financial document that shows changes in the value of a company's equity over a specific period, including investments by shareholders and retained earnings.