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    Exam 21: Cost-Volume-Profit Analysis
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    If Sales Are $425,000, Variable Costs Are 62% of Sales
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If Sales Are $425,000, Variable Costs Are 62% of Sales

Question 123

Question 123

Multiple Choice

If sales are $425,000, variable costs are 62% of sales, and operating income is $50,000, what is the contribution margin ratio?


A) 38%
B) 26.8%
C) 11.8%
D) 62%

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