Question 2 Answer saved Marked out of 1 ABC Inc. manufactures and sells toys. Price and cost data are as follows: Flag question $26.00 Selling price per unit (package of 2 CDs).. Variable costs per unit: Direct material... Direct labor........ Artist's royalties...... Manufacturing overhead... Selling expenses......... Total variable costs per unit... Annual fixed costs: Manufacturing overhead..... Selling and administrative............ Total fixed costs.... Forecasted annual sales volume (120,000 units)..... $6.50 $5.00 $5.00 $3.50 $1.00 $21.00 $188,000 $270,000 $458,000 $3,120,000 What is the company's contribution margin ratio (CM ratio)? (Please indicate your result with one decimal place. Example: 40.5) Answer: 0.01785