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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The coffee club sells specialist this question solution general accounting

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.)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education