The following information pertains to the Northwest Territory of Jordan, Inc.:

-The contribution margin is
A) $150,000.
B) $330,000.
C) $270,000.
D) $100,000.

Question

The following information pertains to the Northwest Territory of Jordan, Inc.:
 
-The contribution margin is
A) $150,000. 
B) $330,000. 
C) $270,000. 
D) $100,000.

Quizplus · Accepted Answer

The contribution margin is the difference between sales revenue and variable costs. In this case, the sales revenue is $500,000 and the variable costs are $350,000, so the contribution margin is $500,000 - $350,000 = $150,000.

The Following Information Pertains to the Northwest Territory of Jordan