Kalbach Corporation, a manufacturing company, has provided the following financial data for November:
The company had no beginning or ending inventories. The contribution margin for November was:
A) $285,000
B) $166,000
C) $310,000
D) $36,000

Question

Kalbach Corporation, a manufacturing company, has provided the following financial data for November: 
The company had no beginning or ending inventories. The contribution margin for November was:
A) $285,000 
B) $166,000 
C) $310,000 
D) $36,000

Quizplus · Accepted Answer

The contribution margin can be calculated by subtracting the variable costs from the total sales revenue. In this case, the total sales revenue for November is $500,000 and the variable costs are $190,000 ($70,000 + $20,000 + $100,000). Therefore, the contribution margin is $310,000 ($500,000 - $190,000).

Kalbach Corporation, a Manufacturing Company, Has Provided the Following Financial