A Manufacturer of Cedar Shingles Has Supplied the Following Data

question 160

Multiple Choice

A manufacturer of cedar shingles has supplied the following data: The company's contribution margin ratio is closest to:

• A)66.2%
• B)73.0%
• C)27.0%
• D)33.8%

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Definitions:

Owner's Capital

The amount of money and other assets owned by a business's owner after all liabilities have been deducted; also known as owner's equity.

Accounts Receivable

Amounts due from clients to a business for goods or services that have been supplied or rendered but haven't been settled.

Accounts Payable

Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Supplies

Materials and items consumed or used in the day-to-day operations of a business but not directly tied to the products manufactured.