Moonwalker's CVP income statement included sales of 5,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $110,000. Contribution margin is
A) $500,000.
B) $300,000.
C) $200,000.
D) $90,000.

Question

Quizplus · Accepted Answer

The contribution margin is calculated as (Selling Price per Unit - Variable Expenses per Unit) * Number of Units Sold. Here, it is ($100 - $60) * 5,000 = $200,000.

Moonwalker's CVP Income Statement Included Sales of 5,000 Units, a Selling