Question

Desossa Music Player's CVP income statement shows that total contribution margin (sales minus variable expenses) is $175,000, and the company's contribution margin per unit is $50

What is the contribution margin ratio?

Answer 1

The contribution margin ratio cannot be calculated without the total sales figure.

Step-by-step explanation:

The contribution margin ratio can be calculated by dividing the contribution margin by the total sales. In this case, the total contribution margin is $175,000 and the total sales are not provided. Therefore, we cannot calculate the contribution margin ratio without the total sales figure.