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%

Examine the effects of income variations on the demand for goods.

Distinguish between movements along the demand/supply curve and shifts in the demand/supply curve.

Understand the economic impacts of seasonal changes on supply and demand.

Evaluate the effects of external shocks (natural disasters, technological advancements) on market dynamics.

---

Definitions:

Multilobed Arches

Architectural elements featuring arches with multiple lobes, often seen in Islamic architecture as ornamental features.

Calligraphic Inscriptions

Artistic writing or lettering skillfully executed with a pen or brush, often used in historical documents, manuscripts, and art to add beauty and significance.

Hijra

The flight of Muhammad from Mecca to Medina in 622, the year from which Islam dates its beginnings.

Muhammad

Muhammad is the Prophet of Islam, regarded by Muslims as the last messenger and prophet sent by God to guide humanity.