Johar Company Provides the Following Information About Its Product What Is the Contribution Margin Ratio?
A) 85%
B) 100

Multiple Choice

Johar Company provides the following information about its product: $$\begin{array} { | l | r | } \hline \text { Targeted operating income } & \$ 65,000 \\\hline \text { Selling price per unit } & 12.00 \\\hline \text { Variable cost per unit } & 1.80 \\\hline \text { Total fixed costs } & 130,000 \\\hline\end{array}$$
What is the contribution margin ratio?

A) 85%
B) 100%
C) 118%
D) 15%