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Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? 35% 45% 65% 55%

Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? 35% 45% 65% 55%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make. During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? Ⓒ35% Ⓒ45% O 65% 55%
Transcribed Image Text:Crane Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make. During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio? Ⓒ35% Ⓒ45% O 65% 55%
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