Chown Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total contribution margin for the month under variable costing is:
A)$179,400
B)$390,000
C)$421,200
D)$142,000

Question

Chown Corporation, which has only one product, has provided the following data concerning its most recent month of operations:  The total contribution margin for the month under variable costing is:
A)$179,400 
B)$390,000 
C)$421,200 
D)$142,000

Quizplus · Accepted Answer

Using the formula, Total Contribution Margin = Total Sales - Total Variable Costs, we can calculate the total contribution margin for the month under variable costing as follows:

Total Sales = $800,000
Variable Cost of Goods Sold = $410,000
Variable Selling and Administrative Expenses = $0
Total Variable Costs = $410,000

Total Contribution Margin = $800,000 - $410,000 = $390,000

Therefore, the correct answer is B, $390,000.

Chown Corporation, Which Has Only One Product, Has Provided the Following