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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
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 |
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