Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the contribution margin ratio.

A. 20.7%.
B. 50.0%.
C. 66.7%.
D. 40.0%.
E. 19.3%.


Answer: D

Business

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