Walnut Corporation sells desks at $480 per desk.The variable costs associated with each desk are $372.Total fixed costs for the period are $456,840.The contribution margin per desk is ________.
A)$51
B)$108
C)$126
D)$195

Question

Quizplus · Accepted Answer

Contribution margin per desk= Selling price per desk-Variable cost per desk
Contribution margin per desk= $480-$372 = $108

Therefore, the contribution margin per desk is $108.

Walnut Corporation Sells Desks at $480 Per Desk