Question

Compute the contribution margin ratio using the following data: sales, $4,800; total variable cost, $2,976.

Answer 1

the contribution margin is $1,824

Step-by-step explanation:

The computation of the contribution margin is shown below:

As we know that

Contribution margin is

= $Sales - variable cost

= $4,800 - $2,976

= $1,824

hence, the contribution margin is $1,824