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:

Answer 1

Answer:

$65,000

Step-by-step explanation:

The question asks to calculate the contribution margin for the month of March.

The contribution margin is mathematically calculated as the selling price per unit minus the variable cost per unit

According to the parameters in this particular question, the contribution margin is selling price - total variable cost = 160,000 - 95,000 = $65,000