For Franklin, Inc., sales is $1,500,000, fixed expenses are $450,000, and the contribution margin ratio is 36%.What are the total variable expenses?

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Quizplus · Accepted Answer

The contribution margin ratio is 36%, meaning the contribution margin is 36% of sales. Therefore, the contribution margin is $1,500,000 * 0.36 = $540,000. The total variable expenses are sales minus the contribution margin, which is $1,500,000 - $540,000 = $960,000.