Gabuat 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) $16,800
B) $37,400
C) $50,600
D) $66,000

Question

Gabuat 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) $16,800 
B) $37,400 
C) $50,600 
D) $66,000

Quizplus · Accepted Answer

Using the contribution margin formula, we have:
Total Sales - Variable Costs = Contribution Margin
$107,000 - $56,400 = $50,600
Therefore, the total contribution margin for the month under variable costing is $50,600.

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