Sales per period 1,000 units

Selling price $40 per unit

Variable manufacturing cost $12 per unit

Selling expenses $5,100 plus 5% of selling price

Administrative expenses $3,000 plus 20% of selling price

note Note that some costs have variable components such as commissions on sales and shipping costs.

The contribution margin ratio would be: A) 70%. B) 45%. C) 75%. D) 55%.