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Multiple Choice Question 86 Sheffield Corp. produces flash drives for computers, which it sells for $25 each. Each flash driv
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Answer #1

ANSWER. B. 52%

CONTRIBUTION MARGIN = CONTRIBUTION / SALES REVENUE * 100

= SALES - VARIABLE COST / SALES REVENUE * 100

= $25,000 - $12,000 / $25,000 * 100

= $13,000 / $25,000 * 100

= 52%

SALES REVENUE = $25 PER DRIVES * 1000 DRIVES

= $25,000

VARIABLE COST = $12 * 1000 = $12,000

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