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Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $1 per cone. Fixed costs are $2,200 per month. What is Dairy Days' contribution margin ratio? A. 125% B. 265% C. 75% D. 65%

Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $1 per cone. Fixed costs are $2,200 per month. What is Dairy Days' contribution margin ratio? A. 125% B. 265% C. 75% D. 65%

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $1 per cone. Fixed costs are $2,200 per month. What is Dairy Days' contribution margin ratio? A. 125% B. 265% C. 75% D. 65%
Transcribed Image Text:Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $1 per cone. Fixed costs are $2,200 per month. What is Dairy Days' contribution margin ratio? A. 125% B. 265% C. 75% D. 65%
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