The contribution margin ratio is the proportion of each sales dollar available to cover fixed costs and provide for profit. The contribution margin ratio can be calculated as follows:

Select one:

a. Fixed Costs/Sales

b. Variable Costs/Fixed Costs

c. (Sales - Variable Costs)/Sales

d. (Sales - Variable Costs)/Fixed Costs

Steel Tables Ltd is a company specialising in the production of a range of steel tables for outdoor use. Which of the following is an example of a manufacturing overhead cost?

Select one:

a. The wages of a person constructing the tables.

b. The steel that goes into a table

c. Paint used for a table

d. Electricity costs of the factory

Creep Ltd purchased a machine for $100 000 on 1 January 2008. It has an estimated useful life of 5 years. Creep Ltd's financial period ends on 31 December. The machine was depreciated using the reducing balance method at 60%. What was the balance of accumulated depreciation at 31 December 2010?

Select one:

a. $84 000

b. $93 600

c. $97 440

d. none of the above