If fixed costs are $15,000, profit before income taxes is $55,000, revenues are $160,000, variable costs are $90,000, contribution margin is:
A) $105,000.
B) $90,000.
C) $70,000.
D) $55,000.

Name: If fixed costs are $15,000, profit before income taxes is $55,000, revenues are $160,000, variable costs are $90,000, contribution margin is: A) $105,000. B) $90,000. C) $70,000. D) $55,000.
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Quizplus · Accepted Answer

The contribution margin is calculated as Revenues minus Variable Costs. So, $160,000 - $90,000 = $70,000.

If Fixed Costs Are $15,000, Profit Before Income Taxes Is