Sutton Company Produces Flash Drives for Computers, Which It Sells

question 92

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 1,000 drives were sold.Fixed costs for April were $2 per unit for a total of $2,000 for the month.How much is the contribution margin ratio?

• A)30%
• B)40%
• C)60%
• D)70%

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Definitions:

Collapse

A feature in software that allows users to reduce a section of content or a panel to a smaller size to hide details, often symbolized by a minus (-) icon.

Actions

In the context of software, predefined operations or commands that can be executed by the system, an application, or the user to perform specific tasks.

Macro

A sequence of commands or instructions consolidated into a single command to automate repetitive tasks in software applications.

Submacro

A subdivision of a macro in programming that performs a specific task or function as part of a larger macro, helping to organize complex sequences of actions.