Dairy Days Ice Cream sells ice cream cones for $4 per customer

Accounting Feb 25, 2021

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 per ice cream cone?

A) $1.00

B) $3.00

C) $0.25

D) $4.00

Expert Solution

Answer: A

Explanation: A)

Sales $4

Less Variable costs 3

= Contribution Margin 1

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