Windspring Spas,Inc.reports the following information for August: $$\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 780,000 \
\hline \text { Variable Costs } & 150,000 \
\hline \text { Fixed Costs } & 80,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $70,000
B) $630,000
C) $550,000
D) $700,000

Question

Windspring Spas,Inc.reports the following information for August: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 780,000 \
\hline \text { Variable Costs } & 150,000 \
\hline \text { Fixed Costs } & 80,000 \
\hline
\end{array}$$ Calculate the contribution margin for August.
A) $70,000
B) $630,000
C) $550,000
D) $700,000

Quizplus · Accepted Answer

The contribution margin is calculated as Sales Revenue minus Variable Costs, which is $780,000 - $150,000 = $630,000.

Windspring Spas,Inc Calculate the Contribution Margin for August