Practice Question 08

In the month of April, Carlys Carwash provided 3,000 car washes at an average price of $25. Fixed costs are $9,300 and variable costs are 85% of sales. Compute the contribution margin and the contribution margin ratio.

A) $65,700 and 87.6%

B) $11,250 and 15%

C) $13,200 and 17.6%

D) $1,950 and 2.6%