Question: Refer to the data in PE 21-11. Compute the contribution margin ratio and the variable cost ratio. Data from PE 21-11 Loeffel Company sells desks

Refer to the data in PE 21-11. Compute the contribution margin ratio and the variable cost ratio.

Data from PE 21-11

Loeffel Company sells desks for $550 each. Th e variable cost per desk is $375. The company’s monthly fixed costs are $75,000. Prepare a contribution margin income statement for a month in which the company sells 550 desks.

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