At a sales level of $300,000,James Company's gross margin is $15,000 less than its contribution margin,its net income is $50,000,and its selling and administrative expenses total $120,000.At this sales level,its contribution margin would be?
A) $155,000.
B) $170,000.
C) $185,000.
D) $250,000.

Question

Quizplus · Accepted Answer

The contribution margin is calculated by adding net income and selling and administrative expenses, then adding the difference between contribution margin and gross margin. So, $50,000 (net income) + $120,000 (expenses) + $15,000 (difference) = $185,000.

At a Sales Level of $300,000,James Company's Gross Margin Is