Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. The total of its variable cost is $150 000. Fixed costs were $180 000. What is Terrific's contribution rate?
O A) 62.1%
©️ B) 16.7%
O c) 20%
©️ D) 60%
O E) 68.4%

The contribution margin ratio (contribution rate) is calculated using the following formula:

\[ \text{Contribution Margin Ratio (\%)} = \left( \frac{\text{Total Revenue} - \text{Total Variable Costs}}{\text{Total Revenue}} \right) \times 100 \]

Given the information provided:

\[ \text{Total Revenue} = $475,000 \]
\[ \text{Total Variable Costs} = $150,000 \]

Plug these values into the formula:

\[ \text{Contribution Margin Ratio (\%)} = \left( \frac{475,000 - 150,000}{475,000} \right) \times 100 \]

\[ \text{Contribution Margin Ratio (\%)} = \left( \frac{325,000}{475,000} \right) \times 100 \]

\[ \text{Contribution Margin Ratio (\%)} \approx 68.42\% \]

Therefore, Terrific Copying's contribution rate is approximately \( 68.42\% \).