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7 June, 09:42

Cross Creek Clinic has revenue totaling $200,000. The clinic has costs totaling $100,000. Of this amount, 60% is variable cost and 40% is fixed cost. What is the clinic's contribution margin, expressed in dollars?

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  1. 7 June, 09:47
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    Contribution Margin = $140,000

    Explanation:

    Giving the following information:

    Cross Creek Clinic has revenue totaling $200,000. The clinic has costs totaling $100,000. Of this amount, 60% is a variable cost and 40% is fixed cost.

    To calculate the contribution margin we need to use the following formula:

    Contribution margin = total sales - total variable cost

    CM = 200,000 - (100,000*0.6) = $140,000
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Home » Business » Cross Creek Clinic has revenue totaling $200,000. The clinic has costs totaling $100,000. Of this amount, 60% is variable cost and 40% is fixed cost. What is the clinic's contribution margin, expressed in dollars?
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