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Solution Library
Calculate Contribution Margin Ratio
Question
Darth Company sells three products. Sales and contribution margin ratios for the three products follow:
|
Product X |
Product Y |
Product Z |
|
|
Sales in dollars |
$24,000 |
$44,000 |
$104,000 |
|
Contribution margin ratio |
38% |
33% |
8% |
Given these data, the contribution margin ratio for the company as a whole would be:
a. 19%
b. 36%
c. 26%
d. It is impossible to determine from the data given.
Summary
The question belongs to Accounting and it discusses about calculation of contribution margin ratio.
Total Word Count 28
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