Problem:
The following monthly data are available for the W.K. Kent Company when it sold 20,000 units of Product A and 5,000 units of Product B:
Sales $220,000 $80,000 $300,000
Variable expenses 120,000 64,000 154,000
Contribution margin $100,000 $16,000 $116,000
Fixed expenses 36,540
Net operating income $ 79,460
The weighted-average contribution margin ratio is
A) 65.45%.
B) 38.67%.
C) 32.73%.
D) 4.64%