Question

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:

Answer 1

Total contribution margin= $74,000

Step-by-step 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