Armstrong Industries has a contribution margin of $240000 and a contribution margin ratio of 30%. How much are total variable costs?
A) $72000
B) $560000
C) $168000
D) $800000

Name: Armstrong Industries has a contribution margin of $240000 and a contribution margin ratio of 30%. How much are total variable costs? A) $72000 B) $560000 C) $168000 D) $800000
Brand: Quizplus
Rating: 5.0 (28 reviews)

Question

Quizplus · Accepted Answer

Total variable costs = Contribution margin / Contribution margin ratio= $240,000 / 30%= $800,000

Armstrong Industries Has a Contribution Margin of $240000 and a Contribution