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Hollis Industries Produces Flash Drives for Computers Which It Sells

question 105

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Hollis Industries produces flash drives for computers which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. How much is the contribution margin ratio?


Definitions:

Sales Trends

The direction and movement in sales performance over a specified period of time, providing insight into consumer behavior and market demand.

Niche Consumers

A select group of consumers with very specific preferences and needs that are different from the larger market.

Norms

Accepted standards or ways of behaving in a group, society, or culture, which guide the actions and expectations of its members.

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