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CVP Drill #20 Madden Company produces dongles for computers, which it sells for $20 each. Each dongle costs $4 of variable costs to make. During June, 2,000 dongles were sold. Fixed costs for May were $5 per unit for a total of $20,000 for the month. How much is the contribution margin ratio?

CVP Drill #20 Madden Company produces dongles for computers, which it sells for $20 each. Each dongle costs $4 of variable costs to make. During June, 2,000 dongles were sold. Fixed costs for May were $5 per unit for a total of $20,000 for the month. How much is the contribution margin ratio?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Can you help me with CVP Drill #20?
CVP Drill #20 Madden Company produces dongles for computers, which it sells for $20 each. Each dongle costs $4 of variable costs to make. During June, were sold. Fixed costs for May were $5 per unit for a 4,000 dongles total of $20,000 for the month. How much is the contribution margin ratio?
Transcribed Image Text:CVP Drill #20 Madden Company produces dongles for computers, which it sells for $20 each. Each dongle costs $4 of variable costs to make. During June, were sold. Fixed costs for May were $5 per unit for a 4,000 dongles total of $20,000 for the month. How much is the contribution margin ratio?
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