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:

Two-Axis

Referring to systems, machines, or components that operate or move in two different directions or planes, typically described by x and y coordinates.

Negative Y Values

Represent values below the horizontal axis in a Cartesian coordinate system, typically indicating a decrease or loss.

Accurately Positioning

The precise placement or alignment of components in relation to each other or to a reference point, crucial for the correct functioning of mechanical systems.

Fixture

A device used to securely hold an object in place during manufacturing or testing processes.