Executive Ambience Company Sells Desks at $480 Per Desk $\begin{array}{ll}\text { Direct materials } & \$ 195 \\\text { Direct labor } & 126 \\\text { Variable factory overhead } & 51\end{array}$

Multiple Choice

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

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