Question

MC Qu. 117 Geneva Co. reports the following... Geneva Co. reports the following information for July: Sales$792,000 Variable costs 239,000 Fixed costs 114,000 Calculate the contribution margin for July.

Answer 1

$553,000

Step-by-step explanation:

The contributon margin is the amount a level of sales contributes to recovering fixed costs of the organization, using the formula for contribution margin formula provided below:

contribution margin=sales-variable costs

sales revenue=$792,000

variable costs=$239,000

contribution margin=$792,000-$239,000

contribution margin=$553,000