Question: Davison Co . prepared the following contribution format income statement based on a sales volume of 1 0 , 0 0 0 units ( the

Davison Co. prepared the following contribution format income statement based on a sales volume of 10,000 units (the relevant range of production is 5,000 units to 15,000 units):
Sales $ 210,000
Variable expenses 126,000
Contribution margin 84,000
Fixed expenses 63,000
Net operating income $ 21,000
Required:
What is the variable expense ratio?

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