Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Kelly Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $15 of variable costs to make. During April,

Kelly Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $15 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) 20% b) 25% c) 75% d) 80%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions