Better Bonds
Better Bonds Provided the Following Data -Refer to Plastic Gym

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Plastic Gym. The company expects tree house demand to increase from 4,000 to 8,000 units per year. What is the new contribution margin ratio?

A) 38%
B) 40%
C) 50%
D) 60%