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Hollis Industries Produces Flash Drives for Computers, Which It Sells

Question 121

Multiple Choice

Hollis Industries produces flash drives for computers, which it sells for $20 each.Each flash drive costs $12 of variable costs to make.During April, 1,000 drives were sold.Fixed costs for March were $2 per unit for a total of $1,000 for the month.How much is the contribution margin ratio?


A) 30%
B) 40%
C) 60%
D) 70%

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