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Dairy Days Ice Cream Sells Ice Cream Cones for $4

question 190

Multiple Choice

Dairy Days Ice Cream sells ice cream cones for $4 per customer.Variable costs are $3 per cone.Fixed costs are $2,500 per month.What is Dairy Days' contribution margin ratio?


Definitions:

Creditor

A creditor is an entity (person or institution) that lends money or extends credit to another entity, expecting to be repaid in the future.

Sole Proprietor

An individual who owns and operates a business alone, bearing full responsibility for its debts and obligations.

Profitable

Describes a situation, project, or enterprise that results in financial gain or benefit.

Management Consulting

A professional service that provides expertise and advice to businesses seeking to improve their operations, strategy, and performance.

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