Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%.How much are total variable costs?
A)$45,000
B)$350,000
C)$105,000
D)$500,000

Question

Quizplus · Accepted Answer

Contribution margin ratio = Contribution margin / Sales30% = 150,000 / SalesSales = 150,000 / 0.30 = $500,000Total variable costs = Sales - Contribution marginTotal variable costs = 500,000 - 150,000 = $350,000

Sarks Company Has a Contribution Margin of $150,000 and a Contribution