PM-A's sales include several models of a product that it manufactures in its Brossard plant. The cost per unit is the same regardless of the model. The following information is taken from the 2007 budget.

Selling price (unit) $40

Variable costs (unit) $25

Annual fixed costs$300,000

Determine the percentage contribution margin.

A.40.0%

C.25.0%

B.62.5%

D.37.5%