Hinge Manufacturing's cost of goods sold is $420,000 variable and $240,000 fixed.The company's selling and administrative expenses are $300,000 variable and $360,000 fixed.
-If the company's sales is $1,480,000, what is its contribution margin?

Question

Quizplus · Accepted Answer

Contribution Margin = Sales - Variable Costs= $1,480,000 - ($420,000 + $300,000)= $1,480,000 - $720,000= $760,000

Hinge Manufacturing's Cost of Goods Sold Is $420,000 Variable and $240,000