Question
Waterway Company produces flash drives for computers, which it sells for $30 each. Each flash drive costs $9.00 of variable costs to make. During April,
Waterway Company produces flash drives for computers, which it sells for $30 each. Each flash drive costs $9.00 of variable costs to make. During April, 3000 drives were sold. Fixed costs for April were $2.40 per unit for a total of $7200 for the month. How much is the contribution margin ratio?
30%
38%
62%
70%
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
