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A cement manufacturer has supplied the following data: Tons of cement produced and sold 280,000
Sales revenue $ 984,000
Variable manufacturing expense $ 233,000
Fixed manufacturing expense $ 316,000
Variable selling and administrative expense $ 190,120 Fixed selling and administrative expense $ 94,000
Net operating income $ 150,880
The company's contribution margin ratio is closest to

Respuesta :

TomShelby

Answer:

CMR = 0.57

per every 1 dollar of sales, the company's retains $0.57

Explanation:

Sales                               984,000

variable manufacturing  233,000

variable S&A                     190,120

Total Variable                    423,120

Contribution Margin       560,880

[tex]\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio[/tex]

560,880/984,000 = 0.57