contestada

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

Respuesta :

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