Refer to the above information. The contribution margin of the local branch is:
A) $5,500,000
B) $2,400,000.
C) $2,246,000.
D) $3,254,000.

Question

Quizplus · Accepted Answer

Contribution margin is calculated as sales revenue minus variable expenses. Since the local branch's sales revenue is $6,500,000 and its variable expenses are $4,254,000, the contribution margin would be $2,246,000 (which is choice C).

Refer to the Above Information