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24 August, 06:32

Given the following information, the total contribution margin is:

Sales Revenue $5,000

Variable cost of goods sold 2,700

Full cost of goods sold 2,900

Fixed selling and admin. expenses 1,100

Variable selling and admin. expenses 800

a. $1,500

b. $2,100

c. $3,900

d. $4,200

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Answers (1)
  1. 24 August, 06:46
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    The correct answer is A.

    Explanation:

    Given the following information, the total contribution margin is:

    Sales Revenue $5,000

    Variable cost of goods sold 2,700

    Full cost of goods sold 2,900

    Fixed selling and admin. expenses 1,100

    Variable selling and admin. expenses 800

    Contribution margin = Sales revenue - total variable cost

    CM = 5,000 - 2,700 - 800 = 1,500
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