The contribution margin for Crandall's Bookstore for the first quarter is?
A) $128,000.
B) $152,000.
C) $240,000.
D) $688,000.

Question

Quizplus · Accepted Answer

The contribution margin is calculated as the difference between the total revenue and the total variable costs. Looking at the information provided in the question, we have:

Total revenue: $480,000 ($400,000 + $80,000)
Total variable costs: $352,000 ($200,000 + $32,000 + $120,000)

Therefore, the contribution margin for the first quarter is:

Contribution margin = Total revenue - Total variable costs
Contribution margin = $480,000 - $352,000
Contribution margin = $128,000

Hence, the correct answer is A) $128,000.

The Contribution Margin for Crandall's Bookstore for the First Quarter