Porter Company has provided the following data for the second quarter of the most recent year: Assume that direct labor is a variable cost and that there were no beginning or ending inventories.
-The total contribution margin of Porter Company for the second quarter was:
A) $37,250
B) $87,000
C) $176,000
D) $211,000

Question

Porter Company has provided the following data for the second quarter of the most recent year:  Assume that direct labor is a variable cost and that there were no beginning or ending inventories.
-The total contribution margin of Porter Company for the second quarter was:
A) $37,250 
B) $87,000 
C) $176,000 
D) $211,000

Quizplus · Accepted Answer

The total contribution margin is equal to the sales revenue minus the variable costs. The sales revenue for the second quarter was $250,000 and the variable costs were $173,000. Therefore, the total contribution margin is $250,000 - $173,000 = $77,000.

Porter Company Has Provided the Following Data for the Second