Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000.
-Contribution margin is
A)$400,000.
B)$240,000.
C)$160,000.
D)$72,000.

Question

Quizplus · Accepted Answer

Contribution margin is calculated as (Selling Price - Variable Expenses) x Units Sold. Here, it is ($100 - $60) x 4,000 = $160,000.

Moonwalker's CVP Income Statement Included Sales of 4,000 Units, a Selling