Fletcher Company Has Three Products with the Following Characteristics Fixed Costs = $30,000 Per Month

question 42

Multiple Choice

Fletcher Company has three products with the following characteristics:
$\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \begin{array} { l } \text { Monthly sales in } \\\text { dollars }\end{array} & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \begin{array} { l } \text { Contribution margin } \\\text { ratio }\end{array} & 20 \% & 40 \% & 16 \% \\\hline\end{array}$ Fixed Costs = $30,000 per month.


-What is the overall contribution margin ratio for the company as a whole,rounded to the nearest tenth of a percent?

• A) 25.3%.
• B) 75.0%.
• C) 25.0%.
• D) 28.5%.

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