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Contribution Margin Ratio

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A tile manufacturer has supplied the following data:

Boxes of tiles produced and sold 580,000
Sales revenue 2,842,000
Variable manufacturing expense 1,653,000
Fixed manufacturing expense 784,000
Variable selling and administrative expense 145,000
Fixed selling and administrative expense 128,000
Net operating income 132,000

Reference: 6-2

The company's contribution margin ratio is closest to:

29.4%
63.3%
4.7%
36.7%

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The solution explains how to calculate the contribution margin ratio.

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