Problem-
A manufacturer of cedar shingles has supplied the following data:
|
Bundles of cedar shakes produced and sold
|
|
250,000
|
|
Sales revenue
|
|
$2,025,000
|
|
Variable expense:
|
|
|
|
Variable manufacturing expense
|
$974,000
|
|
|
Variable selling and administrative expense
|
259,000
|
1,233,000
|
|
Contribution margin
|
|
792,000
|
|
Fixed expense:
|
|
|
|
Fixed manufacturing expense
|
511,000
|
|
|
Fixed selling and administrative expense
|
270,000
|
781,000
|
|
Net operating income
|
|
$11,000
|
The company's contribution margin ratio is closest to:
Additional information-
The problem belongs to Basic Accounting and it discuss about calculation of contribution margin ratio.