Cherry Wood Company Sells Desks at $480 Per Desk $$\begin{array} { l r } \text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$$

Multiple Choice

Cherry Wood Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$$ Total fixed costs for the period are $456,840.The contribution-margin ratio is _____.

A) 22.5%
B) 29.0%
C) 40.6%
D) 77.5%