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15 May, 11:41

If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin ratio is closest to: Select one: a. 29% b. 71% c. 340% d. 23%

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  1. 15 May, 11:53
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    a. 29%

    Explanation:

    Given that

    Contribution margin = $55,900

    Sales = $190,000

    The computation of contribution margin ratio is shown below:-

    Contribution margin ratio = Contribution margin : Sales

    = $55,900 : $190,000

    = 29%

    Therefore for computing the contribution margin ratio we simply divide sales by contribution margin ratio.
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Home » Business » If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin ratio is closest to: Select one: a. 29% b. 71% c. 340% d. 23%
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