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Dairy Days Ice Cream sells ice cream cones for​ $5 per customer. Variable costs are​ $2 per cone. Fixed costs are​ $2100 per month. What is Dairy​ Days' contribution margin​ ratio?

Respuesta :

Samawati

Answer:

0.6 or 60%

Explanation:

The contribution margin ratio is calculated by the formula below.

Contribution margin ratio = contribution margin

     sales revenue

= For Dairy D's

Contribution margin per unit = sales - variable expenses

=$5-$2

= $3 per unit

Contribution margin = Contribution  margin per unit

    sale price per unit

   =3/5

   =0.6 or 60%

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