Determine the contribution margin ratio, Accounting Basics

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Determine the contribution margin ratio

Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

a. 30%

b. 40%

c. 60%

d. 70%

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Accounting Basics: Determine the contribution margin ratio

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Accounting Basics: Determine the contribution margin ratio

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Recent Questions Asked Accounting Basics

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Accounting Basics: Determine the contribution margin ratio

Reference No:- TGS069708

Recent Questions Asked Accounting Basics

Q : Management theory

Q : Psychology

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Q : Determine the contribution margin ratio

Q : What percent are variable costs of sales

Q : Variable expenses in the cvp income statement

Q : Controllable margin for the year

Q : Problem on budgeted sales revenue for the third quarter

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