The following data have been provided by a retailer that sells a single product.
-What is the best estimate of the company's contribution margin for this year?
A)$252,000
B)$300,000
C)$158,000
D)$120,000

Question

The following data have been provided by a retailer that sells a single product. 
-What is the best estimate of the company's contribution margin for this year?
A)$252,000 
B)$300,000 
C)$158,000 
D)$120,000

Quizplus · Accepted Answer

The contribution margin can be estimated by subtracting the variable costs from the total revenue. From the given information, the total revenue is $560,000 and the variable costs are $308,000. Therefore, the contribution margin is $252,000 (560,000 - 308,000). Option A is the closest estimate to this calculated value.

The Following Data Have Been Provided by a Retailer That