Contribution margin equals

sales minus variable cost minus fixed cost

sales minus variable cost

sales minus fixed cost

fixed cost minus variable cost

Knowledge Check $02$

Old Lyme Corporation currently sells its products for $$50$ per unit. The company's variable costs are $$20$ per unit. Fixed expenses amount to a total of $$5,000$ per month. What is the company's variable expense ratio?

$60\%$

$40\%$

$20\%$

$100\%$