John Wilson, a sole proprietor, has the following projected figures for next year:

Selling price per unit	$ 200.00
Contribution margin per unit	50.00
Total fixed costs	700,000

What is the contribution margin ratio? (Note: Round answer to three decimal places.)

a.1.429

b.0.429

c.3.333

d.0.250

e.0.700

The income statement for Elite Manufacturing Company for the current year is as follows:

Sales (15,000 units)	$180,000
Variable expenses	100,000
Contribution margin	$ 80,000
Fixed expenses	60,000
Operating income	$ 20,000

What is the contribution margin per unit? (Note: Round answer to two decimal places.)

a.$7.20

b.$1.20

c.$6.56

d.$5.33