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Based on the following information, what is the contribution margin ratio for the Rock Lobster Pizzaria? Pizzas sold during t

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Answer #1

1) Contribution margin ratio = (Sales-Variable expense)/Sales

                                         = (14-9)/14

Contribution margin ratio = 35.71%

So answer is b) 35.7%

2) Contribution margin statement is not required by GAAP... External user uses absorption Costing income statement

So answer is d) Costs are classified as being either fixed or variable

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