Concept of contribution margin ratio
If a company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been:
A) $750,000.
B) $300,000.
C) $1,250,000.
D) $200,000.
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Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Spor
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