During March, a firm expects its total sales to be $170,000, its total variable costs to be $96,000, and its total fixed costs to be $26,000. The contribution margin for March is:

Question

Sophie

Business

14 January, 07:59

During March, a firm expects its total sales to be $170,000, its total variable costs to be $96,000, and its total fixed costs to be $26,000. The contribution margin for March is:

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Krish Petty · Answer 1

Total contribution margin = $74,000

Explanation:

Giving the following information:

During March, a firm expects its total sales to be $170,000, its total variable costs to be $96,000, and its total fixed costs to be $26,000.

Contribution margin = selling price - unitary variable cost

Total contribution margin = revenue - total variable cost

Total contribution margin = 170,000 - 96,000 = $74,000