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Sales Variable expenses $ 26,000 14,000 Contribution margin Fixed expenses 12,000 7,880 Net operating income 4,200 3. What is

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Answer #1

Answer :

Variable expense ratio = variable cost ÷ net sales

Given , variable cost = $14,000 , sales = $26,000

Therefore

Variable expense ratio = $14,000 ÷ $26,000

= 0.53846

= 53.85 %

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