Question: Discount Airlines is preparing a contribution margin report segmented by route. The following information is available: Line Item DescriptionAtlanta / New YorkMiami / LANew York

Discount Airlines is preparing a contribution margin report segmented by route. The following information is available:
Line Item DescriptionAtlanta/
New YorkMiami/LANew York/
ChicagoAverage ticket price per passenger$900$1,240$750Total passengers served8,8007,00012,200Total miles flown176,000195,00097,600
The variable costs per unit are as follows:
Line Item DescriptionVariable Costs Per UnitFood/beverage service$7 per passengerSelling$90 per passengerFuel$15 per mileWages$20 per mile
What is the contribution margin ratio for the Miami/LA route (rounded to one decimal place)?
a.13.5%
b.45.2%
c.71.6%
d.21.4%

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