The following information pertains to the Southern Territory of Nordeen Company:

-The contribution margin is
A) $37,500.
B) $82,500.
C) $67,500.
D) $25,000.

Question

The following information pertains to the Southern Territory of Nordeen Company:
 
-The contribution margin is
A) $37,500. 
B) $82,500. 
C) $67,500. 
D) $25,000.

Quizplus · Accepted Answer

The contribution margin can be calculated by subtracting variable expenses from sales revenue. Assuming the given information is a reference to the product or service being offered in the Southern Territory, we do not know the sales revenue or variable expenses. Therefore, we cannot calculate the contribution margin directly.

The Following Information Pertains to the Southern Territory of Nordeen