What is the company's contribution margin ratio?

A) 500%.
B) 20%.
C) 62.5%.
D) 160%.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or production volume.

Fixed Expenses

Costs that do not change in total over a wide range of activity levels or over a short period, such as rent or salaries.

Net Income

The total earnings of a company, subtracting total expenses from total revenue.