Assume the following information for a product line:

-Refer to Figure 8-12. What is the contribution margin of the product line?
A) $400,000
B) $525,000
C) $445,000
D) $515,000

Question

Assume the following information for a product line:
 
-Refer to Figure 8-12. What is the contribution margin of the product line?
A) $400,000 
B) $525,000 
C) $445,000 
D) $515,000

Quizplus · Accepted Answer

To calculate the contribution margin, we take the total revenue ($1,810,000) and subtract the total variable expenses ($1,365,000). This gives us a contribution margin of $445,000. Therefore, the correct answer is C.

Assume the Following Information for a Product Line