Gainesville Company has provided the following information
Sales price per unit $56
Variable cost per unit 12
Fixed costs per month $12,000
Calculate the contribution margin ratio. (Round your answer to two decimal places.)
A) 21.43%
B) 82.35%
C) 64.71%
D) 78.57%
D .D) Contribution margin ratio = Contribution margin / Net sales revenue
Sales price $56
Less: variable cost (12 )
Contribution margin $44
Contribution margin ratio = ($44 / $56 ) x 100 = 78.57%
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