Hollis industries produces flash drives for computers, which it sells for $20 each. each flash drive requires $13 of variable costs to make. during april, 1,000 drives were sold. fixed costs for march were $2 per unit for a total of $1,000 for the month. how much is the contribution margin ratio?

Question

Business

Knucklebutt

20 October, 20:43

Hollis industries produces flash drives for computers, which it sells for $20 each. each flash drive requires $13 of variable costs to make. during april, 1,000 drives were sold. fixed costs for march were $2 per unit for a total of $1,000 for the month. how much is the contribution margin ratio?

+1

Answers (1)

Know the Answer?

Cindy Poole · Answer 1

If the Hollis industries produce flash drives for computers, which it sells for $20 each, and each flash drive requires $13 of variable costs to make, then during April, 1,000 drives were sold, then the contribution margin ratio will be 35%.