Windspring Spas, Inc. reports the following information for August: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 590,000 \
\hline \text { Variable Costs } & 160,000 \
\hline \text { Fixed Costs } & 50,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $110,000
B) $430,000
C) $380,000
D) $540,000

Question

Windspring Spas, Inc. reports the following information for August: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 590,000 \
\hline \text { Variable Costs } & 160,000 \
\hline \text { Fixed Costs } & 50,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $110,000
B) $430,000
C) $380,000
D) $540,000

Quizplus · Accepted Answer

The contribution margin is calculated as Sales Revenue minus Variable Costs, which is $590,000 - $160,000 = $430,000.

Windspring Spas, Inc Calculate the Contribution Margin for August