Sandhill Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States.
The stores purchase several hat styles from a single distributor at
$10
each. All other costs
incurred by the company are fixed. Sandhill Cash, Ltd. sells the hats for
$40
each.
(a)
(b)
Your answer is incorrect.
What is Sandhill Cash's contribution margin ratio? Its variable cost ratio?
Contribution margin ratio
Variable cost ratio