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The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?
Suggested Answer: A
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35 comments · newest first
PE
Penney
10 months ago
Totally agree with 58.5%, makes sense!
JA
Jacinta
10 months ago
I think the C/S ratio is around 41.5%.
MA
Malinda
10 months ago
The total sales revenue after 10 months is $4,050,000.
FR
Frankie
11 months ago
Wait, how did we get to 70.9%? That seems high!
EL
Ellen
11 months ago
Variable costs total $2,370,000 now.
MA
Marjory
11 months ago
I’m leaning towards option B, but I’m not completely confident. I hope I remember the contribution margin calculation correctly!
CL
Clorinda
11 months ago
This question feels similar to one we practiced last week! I think we need to add the month 10 results to the year-to-date totals first.
DE
Derick
12 months ago
I think the C/S ratio is calculated by dividing contribution margin by sales revenue, but I can't recall the exact numbers we need to use here.
BA
Basilia
12 months ago
I remember we calculated the C/S ratio in class, but I'm not sure if I got the formula right for the year-to-date totals.
CL
Clorinda
12 months ago
I'm feeling confident about this one. The key is to focus on the year-to-date data and incorporate the month 10 information to get the final C/S ratio.
IO
Iola
1 year ago
This seems pretty simple. I'll just plug the numbers into the formula and see which answer choice matches my calculation.
CH
Chandra
1 year ago
Okay, I think I've got this. I'll add the month 10 sales and variable costs to the year-to-date numbers, then divide the contribution margin by the total sales to get the C/S ratio.
BI
Billye
1 year ago
Hmm, I'm a bit unsure about how to approach this. I know I need to calculate the contribution margin, but I'm not sure if I should be using the month 10 data or the year-to-date data.
GL
Glendora
1 year ago
This looks like a straightforward contribution margin calculation. I'll need to find the total year-to-date sales and variable costs, then calculate the C/S ratio.
LY
Lyda
1 year ago
I'm feeling a bit like a math magician here. Let me crunch the numbers and I'll say B. 70.9% is the winner!
TA
Tammara
1 year ago
Haha, these options are like a buffet of wrong answers. I'm going with B, 70.9% all the way!
TI
Tish
1 year ago
I agree with you, A seems like the most reasonable choice.
LA
Lai
1 year ago
I think B is too high, I'm going with A, 58.5%.
SO
Soledad
1 year ago
D seems like the obvious choice here. 40% is a nice round number, and it just feels right.
CA
Casey
1 year ago
I agree with you, D does seem like the most reasonable choice for the year-to-date C/S ratio.
AR
Arlyne
1 year ago
I see your point, but I still think D is the best option here.
SE
Sean
1 year ago
I'm leaning towards A actually. It seems like a higher ratio would make more sense.
VE
Veronika
1 year ago
I think D is the correct answer too. It does seem like the most logical choice.
AH
Ahmed
1 year ago
Gotta be C. 41.5% sounds about right for the year-to-date contribution to sales ratio.
IS
Isreal
1 year ago
I agree with you, C. 41.5% makes the most sense given the sales revenue and variable costs.
TE
Teri
1 year ago
I'm going with A. 58.5% seems like the right year-to-date contribution to sales ratio.
MI
Mitsue
1 year ago
I think it's actually B. 70.9% seems more accurate based on the numbers.
CA
Carey
1 year ago
I'm not sure, but based on the numbers provided, A) 58.5% makes sense to me
SI
Silva
1 year ago
I calculated it and got 58.5% as well, so I think the answer is A)
LA
Lawanda
1 year ago
I agree with Yong, the ratio seems to be close to 58.5%
YO
Yong
1 year ago
I think the C/S ratio would be around 58.5%
HE
Herminia
1 year ago
Hmm, I think the answer is B. The C/S ratio calculations make sense to me.
AB
Abraham
1 year ago
Yes, and in this case, it would be $1,230,000 divided by $3,600,000, which equals 0.3425 or 34.25%.
TO
Tonja
1 year ago
I think it's calculated by dividing contribution margin by sales revenue.
LI
Lili
1 year ago
I agree, the C/S ratio is an important metric to track.