Question

The following information is available for Roberts​ Company: Sales revenue ​$350,000 Cost of goods sold ​$120,000 Total fixed costs ​$60,000 Total variable costs ​$100,000 What amount would you find on​ Roberts' contribution margin income​ statement?

Answer 1

$250,000

Step-by-step explanation:

Given that

Sales revenue ​= $350,000

Total variable costs = ​$100,000

The computation of contribution margin is given below:-

Contribution margin = Sales revenue - Total variable cost

= $350,000 - $100,000

= $250,000

Therefore, for computing the contribution margin we simply deduct the total variable cost from sales revenue.