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Frosty Treats Dessert Co. sells frozen yogurt for $6 per customer. Variable cost: $2 per serving Fixed cost: $3,000 per month What is Frosty Treats' contribution margin ratio? A. 66.7% B. 33.3% C. 300% D. 50%

Frosty Treats Dessert Co. sells frozen yogurt for $6 per customer. Variable cost: $2 per serving Fixed cost: $3,000 per month What is Frosty Treats' contribution margin ratio? A. 66.7% B. 33.3% C. 300% D. 50%

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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What is the contribution margin ratio for this financial accounting question?

Frosty Treats Dessert Co. sells frozen yogurt for $6 per customer. Variable cost: $2 per serving Fixed cost: $3,000 per month What is Frosty Treats' contribution margin ratio? A. 66.7% B. 33.3% C. 300% D. 50%
Transcribed Image Text:Frosty Treats Dessert Co. sells frozen yogurt for $6 per customer. Variable cost: $2 per serving Fixed cost: $3,000 per month What is Frosty Treats' contribution margin ratio? A. 66.7% B. 33.3% C. 300% D. 50%
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