At a sales level of $300,000, Ben's Burgers' gross margin is $50,000 less than its contribution margin. If its operating income is $75,000, and total SG&A expenses are $30,000, what is the contribution margin of Ben's Burgers?

Question

Quizplus · Accepted Answer

Operating Income + Total SG&A expenses = Gross Margin; $75,000 + $30,000 = $105,000 Gross Margin; Contribution Margin = Gross Margin, $105,000 + $50,000 = $155,000.

At a Sales Level of $300,000, Ben's Burgers' Gross Margin