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Homework answers / question archive / Jack's Toys sells kites for $20 each
Jack's Toys sells kites for $20 each. Variable costs are $8 per kite. Fixed costs are $2,400 per month. What is the contribution margin ratio for the kites?
A) 167%
B) 60%
C) 12%
D) 40%
Answer: B
Explanation: B)
Sales $20
Less Variable costs 8
= Contribution Margin 12 divided by $20 = 60%
