Trillium, Inc What Is the Contribution Margin Ratio of Beta? (Round Your

question 138

Multiple Choice

Trillium, Inc. reports the following information for April: $$\begin{array} { | l | r | r | } \hline & \text { Alpha } & \text { Beta } \\\hline \text { Units sold } & 4000 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 300 & \$ 700 \\\hline \text { Variable manufacturing cost per unit } & 200 & 500 \\\hline \text { Sales commission per unit: } & & \\\hline \text { Alpha: } 4 \% \text { of sales price } & 12 & \\\hline \text { Beta: } 8 \% \text { of sales price } & & 56 \\\hline\end{array}$$ What is the contribution margin ratio of Beta? (Round your answer to two decimal places.)

• A) 28.57%
• B) 20.57%
• C) 33.33%
• D) 8.00%

---

Definitions:

Freight Charges

Costs associated with transporting goods from one place to another.

Service Potential

Service potential refers to the capacity of an asset to provide goods or services that contribute to the future income of an organization.

Office Equipment

Tangible, long-term assets used in the operation of a business, such as computers, printers, and furniture, facilitating daily work tasks.

Land

A natural resource representing the earth's surface not including any structures; often considered a fixed asset in accounting.