Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 38,000 units at $10.00/unit. Below is a listing of estimated expenses.
A European firm was contracted to sell the product and will receive a commission of 15% of the sales price. No U.S. home office expenses will be allocated to the new facility.
The contribution margin ratio for Curvy Confections is
A) 33.33%.
B) 30.00%.
C) 70.00%.
D) 85.00%.
Correct Answer:
Verified
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