Use the Following Information to Determine the Contribution Margin Ratio

question 224

Multiple Choice

Use the following information to determine the contribution margin ratio: $\begin{array} { | l r | } \hline \text { Unit sales } & 50,000 \text { Units } \\\text { Unit selling price } & \$ 14.50 \\\text { Unit variable cost } & \$ 7.50 \\\text { Fixed costs } & \$ 204,000 \\\hline\end{array}$

• A) 24.5%.
• B) 48.3%.
• C) 34.1%.
• D) 6.9%.
• E) 51.7%.

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Definitions:

Somatotrophic

Pertaining to or promoting somatic growth, often referred to in context with growth hormone that stimulates growth, cell reproduction, and cell regeneration.

Troph

A suffix indicating growth, development, or nourishment, often used in biological contexts.

Transverse Plane

An imaginary plane that divides the body into upper and lower parts.

Transverse

Refers to lying or extending across something; perpendicular to the long axis.