Answer the following questions using the information below:
Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs.
-To determine contribution margin use:
A)only variable manufacturing costs
B)only fixed manufacturing costs
C)both variable and fixed manufacturing costs
D)both variable manufacturing costs and variable nonmanufacturing costs

Question

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting all variable costs (both manufacturing and nonmanufacturing) from sales revenue.

Answer the Following Questions Using the Information Below