Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000.
A)70%
B)60%
C)30%
D)40%

Name: Find the contribution profit margin based on the following information: cash fixed costs = $60,000; variable costs = $70,000; and sales = $100,000. A)70% B)60% C)30% D)40%
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Question

Quizplus · Accepted Answer

The contribution margin is calculated as (Sales - Variable Costs) / Sales. Here, it's ($100,000 - $70,000) / $100,000 = $30,000 / $100,000 = 30%.

Find the Contribution Profit Margin Based on the Following Information