The Cumberland Company provides the following information: $\begin{array} { l }
\text {Sales (250,000 units) }&\$625,000\
\text {Manufacturing costs: }&\
\text {Variable }&212,500\
\text { Fixed}&37,500\
\text {Selling and administrative costs: }&\
\text {Variable }&100,000\
\text { Fixed}&25,000\
\end{array}$

What is the total contribution margin for Cumberland?

Question

The Cumberland Company provides the following information: $\begin{array} { l  }
 \text {Sales (250,000 units) }&\$625,000\
 \text {Manufacturing costs: }&\
 \text {Variable }&212,500\
 \text { Fixed}&37,500\
 \text {Selling and administrative costs: }&\
 \text {Variable }&100,000\
 \text { Fixed}&25,000\
\end{array}$

What is the total contribution margin for Cumberland?

Quizplus · Accepted Answer

The total contribution margin is calculated by subtracting all variable costs from sales. Variable costs include both variable manufacturing costs ($212,500) and variable selling and administrative costs ($100,000), totaling $312,500. Subtracting these from sales ($625,000) gives a contribution margin of $312,500.

The Cumberland Company Provides the Following Information What Is the Total Contribution Margin for Cumberland? A)$312,500 B)$250,000

The Cumberland Company Provides the Following Information What Is the Total Contribution Margin for Cumberland?
A)$312,500
B)$250,000