Prestige Corporation has Sales of $98,500,Indirect Expenses of $26,000,Direct Expenses of $62,400,and Cost of Goods Sold of $49,600.What is Prestige Corporation's Contribution Margin?

Question

Quizplus · Accepted Answer

Contribution Margin is calculated as Sales minus Direct Expenses and Cost of Goods Sold. Here, it is $98,500 - $62,400 - $49,600 = ($13,500).

Prestige Corporation Has Sales of $98,500,Indirect Expenses of $26,000,Direct Expenses