I got selling price as $40, variable expense $21, contribution margin $19. Contribution margin ratio = 19/40 = 48%

Due to erratic sales of its sole product-a high-capacity battery for laptop computers PEM, Inc., has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales(13,400 units x$40 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss $536,000 321,600 214,400 238,400 $(24,0e0)