Given sales price of $8.00 and variable rate of .4, contribution margin is:

Name: Given sales price of $8.00 and variable rate of .4, contribution margin is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting the variable costs from the sales price. With a sales price of $8.00 and a variable rate of 0.4 (or 40%), the variable cost is 40% of $8.00, which is $3.20. Subtracting this from the sales price ($8.00 - $3.20) gives a contribution margin of $4.80.

Given Sales Price of $8