How much is 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: How much is the contribution margin ratio
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