(Appendix 5A) Compton Corporation is a wholesale distributor of educational CD-ROMs. The company's records indicate the following:

-What is the company's contribution margin for this year?
A) $315,000
B) $(667,500)
C) $375,000
D) $213,000

Question

(Appendix 5A) Compton Corporation is a wholesale distributor of educational CD-ROMs. The company's records indicate the following:
 
-What is the company's contribution margin for this year?
A) $315,000 
B) $(667,500) 
C) $375,000 
D) $213,000

Quizplus · Accepted Answer

11ea7761_188a_2197_81a5_e313a30152ed_TB2580_00 Variable cost = Change in cost ÷ Change in activity = $12,000 ÷ 50,000 units = $0.24 per unit
 11ea7761_188a_2198_81a5_fd4e64fbc1c7_TB2580_00

(Appendix 5A) Compton Corporation Is a Wholesale Distributor of Educational