Old Canadian Company Has Sales of $500,000, Variable Costs of $425,000

Multiple Choice

Old Canadian Company has sales of $500,000, variable costs of $425,000, and fixed costs of $25,000.New World Company has sales of $500,000, variable costs of $200,000, and fixed costs of $250,000.Old Canadian's contribution margin ratio is

A) 15%.
B) 60%.
C) 85%.
D) 95%.