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Sweet Scoops Gelato sells gelato cups for $6 per customer. Variable costs are $1.50 per cup. Fixed costs are $3,500 per month. What is Sweet Scoops' contribution margin ratio? A. 65% B. 75% C. 80% D. 25%

Sweet Scoops Gelato sells gelato cups for $6 per customer. Variable costs are $1.50 per cup. Fixed costs are $3,500 per month. What is Sweet Scoops' contribution margin ratio? A. 65% B. 75% C. 80% D. 25%

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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Sweet Scoops Gelato sells gelato cups for $6 per customer. Variable costs are $1.50 per cup. Fixed costs are $3,500 per month. What is Sweet Scoops' contribution margin ratio? A. 65% B. 75% C. 80% D. 25%
Transcribed Image Text:Sweet Scoops Gelato sells gelato cups for $6 per customer. Variable costs are $1.50 per cup. Fixed costs are $3,500 per month. What is Sweet Scoops' contribution margin ratio? A. 65% B. 75% C. 80% D. 25%
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