Question
Question 6) Rainier Plumbing Pipes has the following income statement for the year: $210,000 Sales (Revenue) ($120,000) COGS $90,000 Gross profit ($60,000) Operating Expenses $30,000
Question 6) Rainier Plumbing Pipes has the following income statement for the year:
$210,000 Sales (Revenue) ($120,000) COGS $90,000 Gross profit ($60,000) Operating Expenses $30,000 Operating Income
Their contribution margin ratio is 30%, what percentage of operating expenses is fixed? You can assume that COGS is a completely variable cost.
- 0%
- 45%
- 55%
- 100%
- None of the above are correct
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Auditing And Assurance Services
Authors: William Messier, Steven Glover, Douglas Prawitt
6th International Edition
0071284664, 978-0071284660
