Concept Check 1 Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup o coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month $1,300. An average of 2,100 cups are sold each month. What is the CM Ratio for Coffee Klatch? Sales... Variable expenses Contribution margin Fixed expenses... Net operating income... $20,000 12,000 8,000 6,000 $ 2,000 The company based this contribution format inco statement on production and sales of 1,000 units The relevant range is fro 500 to 1,500 units. What is the Contribution margin ratio? A. 8% B. 60% C. 25% D. 40%