Question

Dairy Days Ice Cream sells ice cream cones for $ 6.00per customer. Variable costs are $...

Dairy Days Ice Cream sells ice cream cones for $ 6.00per customer. Variable costs are $ 5.00per cone. Fixed costs are $ 2,500 per month. What is Dairy Days' contribution margin ratio?

A. 266% B. 17% C. 55% D. 58%

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Answer #1
Sale Price          6.00
Variable cost          5.00
Contribution          1.00
Contibution ratio= 1*100/6
Contibution ratio= 16.67%
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