Keys Spas,Inc.reports the following information for August: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 740,000 \
\hline \text { Variable Costs } & 230,000 \
\hline \text { Fixed Costs } & 100,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $130,000
B) $510,000
C) $410,000
D) $640,000

Question

Keys Spas,Inc.reports the following information for August: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 740,000 \
\hline \text { Variable Costs } & 230,000 \
\hline \text { Fixed Costs } & 100,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $130,000
B) $510,000
C) $410,000
D) $640,000

Quizplus · Accepted Answer

The contribution margin is calculated as Sales Revenue minus Variable Costs, which is $740,000 - $230,000 = $510,000.

Keys Spas,Inc Calculate the Contribution Margin for August