If the selling price is $250 and the variable cost is $150, what is the contribu

If the selling price is $250 and the variable cost is $150, what is the contribution margin ratio?

If the selling price is $250 and the variable cost is $150, what is the contribution margin ratio?

Step 1: Identify the selling price, which is $250.
Step 2: Identify the variable cost, which is $150.
Step 3: Calculate the contribution margin by subtracting the variable cost from the selling price: $250 - $150 = $100.
Step 4: Calculate the contribution margin ratio by dividing the contribution margin by the selling price: $100 / $250.
Step 5: Simplify the fraction: $100 / $250 = 0.4.
Step 6: Convert the decimal to a percentage by multiplying by 100: 0.4 * 100 = 40%.

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