Determined the contribution margin ratio


Question: Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and its accounting firm has determined the contribution margin ratio on each box of donuts to be 50%. Oriole is currently averaging monthly sales of 2860 boxes of donuts, and the company has a tax rate of 25%. Based on this information, Oriole Cupcakes has been averaging monthly net income of O $2664 $2300 O $2550 O $2529

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Accounting Basics: Determined the contribution margin ratio
Reference No:- TGS03418050

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