The Halpert Group produces a single product selling for $70 per unit

Accounting Feb 26, 2021

The Halpert Group produces a single product selling for $70 per unit. Variable costs are $7 per unit and total fixed costs are $5,000. What is the contribution margin ratio?

A) 10%

B) 63%

C) 90%

D) 111%

Expert Solution

Answer: C

Explanation: C)

Sales $70

Less Variable costs 7

= Contribution Margin 63 Divided by $70 = 90%

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