Question

During march, a firm expects its total sales to be $151,000, its total variable costs to be $94,100, and its total fixed costs to be $24,100. The contribution margin for March is

Answer 1

$56,900

Explanation:

Given that:

Total sales in March = $151,000

Total variable cost = $94,100

The contribution margin for March can be obtained using the relation :

(Total sales - Total variable expenses)

($151,000 - $94,100)

= $56,900

Hence, contribution March for the month of March is $56,900