What is the contribution margin ratio for the company

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Problem

A company sells two models of chairs -- a standard model and a deluxe model. The standard model sells for $100 and has a variable cost of $60 per unit. The deluxe model sells for $150 and has a variable cost of $75 per unit. Fixed costs are $180,000 per month. The sales mix is 60% standard model and 40% deluxe model. Get the instant assignment help. What is the contribution margin (CM) ratio for the company?

Reference no: EM133931745

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