Assume the following information for a product line:
What is the product line's contribution margin?
A) $ 825,000
B) $ 940,000
C) $ 890,000
D) $ 450,000

Name: Assume the following information for a product line: What is the product line's contribution margin? A) $ 825,000 B) $ 940,000 C) $ 890,000 D) $ 450,000
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Question

Assume the following information for a product line:
 What is the product line's contribution margin?
A) $ 825,000 
B) $ 940,000 
C) $ 890,000 
D) $ 450,000

Quizplus · Accepted Answer

Sales revenue - Variable manufacturing costs - Variable selling & administration costs = $1,100,000 - $100,000 - $60,000 = $940,000

Assume the Following Information for a Product Line