Finding out the contribution margin ratio

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Reference no: EM13159082

Clark Company 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%.

Reference no: EM13159082

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