Geraldo Inc. sells several products. Information of average revenue and costs is as follows:

Selling price per unit	$30.00
Variable costs per unit:
Direct material	$5.25
Direct manufacturing labour	$11.50
Manufacturing overhead	$1.46
Selling costs	$1.85
Annual fixed costs	$110,000

1. The Geraldo Inc. contribution margin ratio is
   1. 43.93%
   2. 42.51%
   3. 29.82%
   4. 63.70%
   5. 70.20%