“Monthly cost and revenue amounts for a textbook are as follows: Fixed Costs Variable Costs Copy editing $3,000 Printing and binding $1.60/copy Art work $1,000 Bookstore discounts $2.00/copy Typesetting $36,000 Salespersons’ commissions $ .25/copy Author’s royalties $1.00/copy Each book sells for $10 per copy. 78. The contribution margin ratio for the textbook is: a. 41.5% b. 54.0% c. 71.5% d. 51.5%”

“Monthly cost and revenue amounts for a textbook are as follows: Fixed Costs Variable Costs Copy editing $3,000 Printing and binding $1.60/copy Art work $1,000 Bookstore discounts $2.00/copy Typesetting $36,000 Salespersons’ commissions $ .25/copy Author’s royalties $1.00/copy Each book sells for $10 per copy. 78. The contribution margin ratio for the textbook is: a. 41.5% b. 54.0% c. 71.5% d. 51.5%”

4The contribution margin for the textbook:CM = Selling Price $10.00 -VC per unit 4.85 CM per unit 5.15CM% = CM per unit / Selling PriceCM% = 5.15 / 10 = 51.5%