Answer:
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