Hawke Caribbean Sales has developed the following projections for the upcoming year of operations.

Sales of 100,000 units at $5 Units sold equal units produced
Variable costs for 100,000 units:
Direct material	$125,000
Direct labor	100,000
Variable overhead	30,000
Selling and administrative expense	45,000
Total fixed costs	120,000

What is the projected contribution margin ratio?

	a.	25%
	b.	40%
	c.	50%
	d.	None of the above