Wiser Group Sells a Single Product for $30 Per Unit

question 271

Multiple Choice

Wiser Group sells a single product for $30 per unit. The variable costs for each unit are $7.50, while the total fixed costs are $4,500. If a 10% sales commission is introduced what is the new Contribution Margin Ratio?

• A) 72.5%
• B) 65%
• C) 75%
• D) No Change

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