Nealy Company has the following information available:
$\begin{array}{ll}
\text { Revencie }&\$500,000\
\text { Variable production costs }&\$100,000\
\text { Fixed production costs }&\$100,000\
\text { Variable selling costs } & \$ 50,000 \
\text { Fixed selling costs } & \$ 50,000
\end{array}$
What is the contribution margin?
A) $300,000
B) $350,000
C) $400,000
D) $450,000

Question

Quizplus · Accepted Answer

The contribution margin is calculated as Revenue minus Variable Costs. Here, Revenue = $500,000, Variable Production Costs = $100,000, and Variable Selling Costs = $50,000. So, the contribution margin = $500,000 - ($100,000 + $50,000) = $350,000.

Nealy Company Has the Following Information Available What Is the Contribution Margin? A) $300,000 B) $350,000 C)

Nealy Company Has the Following Information Available What Is the Contribution Margin?
A) $300,000
B) $350,000
C)