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telo118 [61]
2 years ago
14

Kite Corporation has provided the following contribution format income statement. Assume that the following information is withi

n the relevant range. Sales (3,000 units) $ 180,000 Variable expenses 108,000 Contribution margin 72,000 Fixed expenses 62,400 Net operating income $ 9,600 The contribution margin ratio is closest to:
Business
1 answer:
laiz [17]2 years ago
3 0

Answer:

40%

Explanation:

Contribution margin = Contribution ÷ Sales × 100

= 72,000 ÷ $180,000 × 100

= 0.4 × 100

= 40%

Please not that other information given in the question are not relevant in arriving at the contribution margin ratio hence will be ignored.

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