McGordon Corporation has provided the following data:$\begin{array}{|l|r|}
\hline \text { Sales } & \$ 800,000 \
\hline \text { Variable expenses } & \$ 560,000 \
\hline \text { Fixed expenses } & \$ 168,000 \
\hline
\end{array}$

-What is the contribution margin?
A) $240,000.
B) $560,000.
C) $632,000.
D) $72,000.

Question

McGordon Corporation has provided the following data:$\begin{array}{|l|r|}
\hline \text { Sales } & \$ 800,000 \
\hline \text { Variable expenses } & \$ 560,000 \
\hline \text { Fixed expenses } & \$ 168,000 \
\hline
\end{array}$

-What is the contribution margin?
A) $240,000.
B) $560,000.
C) $632,000.
D) $72,000.

Quizplus · Accepted Answer

The contribution margin is calculated as Sales - Variable Expenses, which is $800,000 - $560,000 = $240,000.

McGordon Corporation Has Provided the Following Data -What Is the Contribution Margin? A) $240,000

McGordon Corporation Has Provided the Following Data -What Is the Contribution Margin?
A) $240,000