Answer:
Total variable expenses = $1,664,000
Explanation:
The computation of the variable expenses is shown below:
As we know that
Contribution margin ratio = Contribution margin ÷ Sales
0.36 = Contribution margin ÷ $2,600,000
So, the contribution margin is
= $2,600,000 × 0.36
= $936,000
Now the contribution margin is
Contribution margin = Sales - variable cost
$936,000 = $2,600,000 - variable cost
So, the variable expense is
= $2,600,000 - $936,000
= $1,664,000
