Exhibit 21-4 Cash2U Company had the following income statement:

-Refer to Exhibit 21-4. Given the data above, Cash2U Company's contribution margin percentage is:

Question

Exhibit 21-4 Cash2U Company had the following income statement:

-Refer to Exhibit 21-4. Given the data above, Cash2U Company's contribution margin percentage is:

Quizplus · Accepted Answer

Contribution margin = total revenue - variable expenses
Contribution margin percentage = (contribution margin/total revenue) x 100
In this case, contribution margin = $600,000 - $360,000 = $240,000.
Contribution margin percentage = ($240,000/$600,000) x 100 = 40%.
Therefore, the contribution margin percentage is 40%.

Exhibit 21-4 Cash2U Company Had the Following Income Statement