Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 38,000 units at $10.00/unit. Below is a listing of estimated expenses.

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$20,000	20%
Labor	$20,000	20%
Overhead	$40,000	50%
Marketing/Admin	$10,000	50%

A European firm was contracted to sell the product and will receive a commission of 15% of the sales price. No U.S. home office expenses will be allocated to the new facility. The contribution margin ratio for Curvy Confections is

		30.00%.
		33.33%.
		70.00%.
		85.00%.