The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on the Gold Coast. Provided below is a summarised version of the income statement for July 2016. Sales revenue - $7,500 Less: Expenses Cost of beverages - $750 Cost of napkins - $750 Rent of cart - $750 Wages - $375 Total expenses $2,625 Profit - $4,875 Calculate the contribution margin ratio. (Round your answer to the nearest whole number.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The coffee club sells specialist this question solution general accounting

The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on
the Gold Coast. Provided below is a summarised version of the income statement for
July 2016.
Sales revenue - $7,500
Less: Expenses
Cost of beverages - $750
Cost of napkins - $750
Rent of cart - $750
Wages - $375
Total expenses $2,625
Profit - $4,875
Calculate the contribution margin ratio. (Round your answer to the nearest whole
number.)
Transcribed Image Text:The Coffee Club sells specialist coffee drinks from a rented cart on the beachside on the Gold Coast. Provided below is a summarised version of the income statement for July 2016. Sales revenue - $7,500 Less: Expenses Cost of beverages - $750 Cost of napkins - $750 Rent of cart - $750 Wages - $375 Total expenses $2,625 Profit - $4,875 Calculate the contribution margin ratio. (Round your answer to the nearest whole number.)
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