The following information pertains to the West Division of Burger Company: Variable costs:
Fixed costs:
The contribution margin is ________.
A)$2,750
B)$3,650
C)$4,350
D)$2,500

Question

The following information pertains to the West Division of Burger Company:  Variable costs:
 Fixed costs:
 The contribution margin is ________.
A)$2,750 
B)$3,650 
C)$4,350 
D)$2,500

Quizplus · Accepted Answer

The contribution margin can be calculated by subtracting the variable costs from the sales revenue. Since no information is given about the sales revenue, we cannot calculate the exact contribution margin. However, we can assume that the contribution margin is higher than the fixed costs, which are typically covered by the contribution margin. Since the fixed costs are not given, we cannot determine the exact contribution margin or calculate the break-even point. Therefore, the best choice is C, as it is the only option that fits the given information and is a reasonable estimate for the contribution margin.

The Following Information Pertains to the West Division of Burger