Kelchner Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $180,000
Variable expenses $108,000
Contribution margin $72,000
Fixed expenses $62,400
Net operating income $9,600
The contribution margin ratio is closest to:
A) 67%
B) 40%
C) 33%
D) 60%