Perfect Clean,Inc Calculate the Contribution Margin and the Contribution Margin Ratio

question 102

Multiple Choice

Perfect Clean,Inc.provides housekeeping services.The following financial data have been provided. $$\begin{array} { | l | r | } \hline \text { Service Revenue } & \$ 80,000 \\\hline \text { Cleaning Supplies Used } & 22,000 \\\hline \text { Wages Expense } & 19,350 \\\hline \text { Office Rent Expense } & 5,150 \\\hline \text { Depreciation Expense- } & \\\text { Machinery } & 550 \\\hline\end{array}$$ Calculate the contribution margin and the contribution margin ratio.(Round your contribution margin to the nearest dollar,and your contribution margin ratio to two decimal places. )

• A)$74,850; 93.56%
• B)$60,650; 75.81%
• C)$32,950; 41.19%
• D)$38,650; 48.31%

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Definitions:

Societal Need

Essential requirements that are necessary for the well-being and functioning of society as a whole.

Expectations

Expectations refer to the beliefs or forecasts about future events or outcomes, often based on past experiences or evidence.

Justice

The principle of fairness and moral rightness in the treatment of individuals, especially in the administration of laws.

Liability

The state of being legally responsible for something, such as a debt or obligation.