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weatherspoon company has a product with a selling price per unit of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. how much is weatherspoon's contribution margin ratio? group of answer choices 45% 55% 150% 182%

Answer :

weatherspoon's contribution margin ratio is 45%

Calculation :

Calculate contribution margin ratio:

Selling price per unit is $200

Variable cost per unit is $90

Fixed costs are $300,000

Contribution margin ratio can be calculated by using the formula below:

Contribution margin ratio = [tex]\frac{Unit contribution margin}{Unit selling price}[/tex]

                            = [tex]\frac{200-110}{200}*100[/tex]

                           = 45%

Contribution margin is the difference between a company's revenue and variable costs, expressed as a percentage. Gross margin earned by a company represents the total revenue available to pay fixed costs and make a profit .

Learn more about contribution margin ratio here : https://brainly.com/question/24039258

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