Use the Information Below to Answer the Following Question(s)

question 35

Multiple Choice

Use the information below to answer the following question(s) .
Anthony Office Supplies sells refills on printer ink cartridges for $16 per refill. Variable costs are $4 per refill. Fixed costs are $2,000 per month.
-What is the contribution margin ratio for the printer ink cartridge refills at Anthony Office Supplies?

• A) 133%
• B) 12%
• C) 25%
• D) 75%

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Definitions:

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Contract

A legally binding agreement between two or more parties that is enforceable by law, characterized by an offer, acceptance, consideration, and mutual intent to be bound.