Bonita Industries produces flash drives for computers, which it sells for $25 each. Each flash...

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Accounting

Bonita Industries produces flash drives for computers, which it sells for $25 each. Each flash drive costs $5 of variable costs to make. During April, 1000 drives were sold. Fixed costs for March were $2 per unit for a total of $1000 for the month. What is the contribution margin ratio?
80%
25%
72%
28%
If a company had a contribution margin of $600000 and a contribution margin ratio of 30%, total variable costs must have been
$2000000
$1400000
$420000
$180000
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