Summersville Production Company Had the Following Projected Information for the Current

Multiple Choice

Summersville Production Company had the following projected information for the current year: $$\begin{array} { l l r } \text { Selling price per unit } & \$ 150 \\\text { Variable cost per unit } & \$ 90 \\\text { Total fixed costs } & \$ 300,000\end{array}$$
What is the contribution margin ratio?

A) 0.400
B) 1.667
C) 2.500
D) 0.600