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 Electric Jet Skis operates a jet ski rental business

Accounting

 Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 for 6 hours. The variable costs are $33 per 6 hour rental, and its fixed costs are $80,000 each month. What is the contribution margin per 6 hour jet ski rental?

A) $33.00

B) $0.40

C) $22.00

D) $2.50

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Answer:  C

Explanation:  C)

Sales                                              $55

Less Variable costs                      33

= Contribution Margin               22