SaleCo sells 8,400 units resulting in $110,000 of sales revenue, $50,000 of variable costs, and $45,000...

Question

Question

Answer 1

Answer #1

Answer is Option B : 54.55%

Explanation :

Contribution Margin Percentage = (Contribution Margin / Sales Revenue) * 100

Sales Revenue = $110,000 (Given)

Variable Costs = $50,000 (Given)

Contribution Margin = Sales Revenue - Variable Costs

Contribution Margin = $110,000 - $50,000

Contribution Margin = $60,000

Therefore,

Contribution Margin Percentage = ($60,000 / $110,000) * 100

Contribution Margin Percentage = 54.545%

Contribution Margin Percentage = 54.55% (rounded off)

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Answer 2

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