Asked by Leticia Miranda on Jun 04, 2024
Verified
What was the division's total contribution margin?
A) $250,000.
B) $180,000.
C) $150,000.
D) $60,000.
Contribution Margin
The amount remaining from sales revenue after all variable expenses have been deducted.
Photo-prints
Photographic images produced on paper or other substrates from digital or film originals.
Industrial Photo-finishing
Refers to the commercial process of developing and printing photographic images on a large scale, typically for businesses.
- Understand and calculate contribution margin and contribution margin ratio.
Verified Answer
MM
Marissa MyersJun 08, 2024
Final Answer :
C
Explanation :
The contribution margin can be calculated as follows:
Revenue from sales = 300,000 x $2.00 = $600,000
Variable expenses = $300,000 + $60,000 + $90,000 = $450,000
Contribution margin = Revenue - Variable expenses = $600,000 - $450,000 = $150,000. Therefore, the answer is C) $150,000.
Revenue from sales = 300,000 x $2.00 = $600,000
Variable expenses = $300,000 + $60,000 + $90,000 = $450,000
Contribution margin = Revenue - Variable expenses = $600,000 - $450,000 = $150,000. Therefore, the answer is C) $150,000.
Learning Objectives
- Understand and calculate contribution margin and contribution margin ratio.
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