Question

During March, a firm expects its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is:a. $65,000.b. $90,000.c. $120,000.d. $40,000.e. $25,000.

Answer 1

a. $65,000

Step-by-step explanation:

Calculation for the contribution margin for March

Total sales 160,000

Less total variable 95,000

Contribution margin 65,000

(160,000-95,000)

Therefore the The contribution margin for March is: $65,000