Frosty Treats Cafe sells ice cream cones for $6 per customer. • • Variable cost = $2 per cone = Fixed cost $3,000 per month What is Frosty Treats Cafe's contribution margin ratio? A. 66.67% B. 50% C. 80% D. 75%

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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I am looking for the correct answer to this financial accounting problem using valid accounting standards.

Frosty Treats Cafe sells ice cream cones for $6 per
customer.
•
•
Variable cost = $2 per cone
=
Fixed cost $3,000 per month
What is Frosty Treats Cafe's contribution margin ratio?
A. 66.67%
B. 50%
C. 80%
D. 75%
Transcribed Image Text:Frosty Treats Cafe sells ice cream cones for $6 per customer. • • Variable cost = $2 per cone = Fixed cost $3,000 per month What is Frosty Treats Cafe's contribution margin ratio? A. 66.67% B. 50% C. 80% D. 75%
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