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Which would be? suzys cool? treatzs contribution margin

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Reference no: EM132516165

?Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the? future, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.

Month                   Number of snow cones                       Total operating costs

January                    ?3,500                                            ?$5,000

February                   ?3,800                                         $4,800

March                      ?5,000 ?                                       $6,800

April ?                      3,600                                       ?$5,450

May ?                  4,700 ?                                           $6,200

June ?                    4,250                                     ? $5,950

  • Suzy uses the high-low method to determine her operating cost equation and sells? 4,500 cones in a month for? $3.00 each.

Question 1: Which of the following would be? Suzy's Cool? Treatz's contribution margin be if Suzy prepared a contribution margin income statement for the? month?

A. ?$5,985

B. ?$7,300

C. ?$8,100

D. ?$9,750

Reference no: EM132516165

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