Fram 3 Chpt se 4. Paney Company makes calendars. Information on cost per unit is as follows: $1.50 Direct materials Direct labor Variable overhead Variable marketing expense 1.20 0.90 0.40 Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35.000. The price per calendar is $10. What is the contribution margin ratio? a. 60% b. 50% c. 36% d. 40% - Which of the following calculations can be used to measure a company's degree of operating leverager a. Sales/fixed costs b. Sales/Contribution margin c. Contribution margin/sales d. Contribution marginet income 6. Foster Company makes power tools. The budgeted sales are $420,000, budgeted variable costs are $147.000, and budgeted fixed costs are $227,500. What is the break-even point in sales dollars? a. $420,000 b. $780,000 c. $350,000 d. $650,000