Use the Following Information to Determine the Contribution Margin Ratio

Multiple Choice

Use the following information to determine the contribution margin ratio: $\begin{array} { | l r | } \hline \text { Unit sales } & 50,000 \text { Units } \\\text { Unit selling price } & \$ 14.50 \\\text { Unit variable cost } & \$ 7.50 \\\text { Fixed costs } & \$ 204,000 \\\hline\end{array}$

A) 24.5%.
B) 48.3%.
C) 34.1%.
D) 6.9%.
E) 51.7%.