Helga's Pretzels sells pretzels for $8. The variable costs for each pretzel are $1, while the total fixed costs are $1000. The contribution margin for 1900 pretzels is

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Quizplus · Accepted Answer

The contribution margin is calculated by subtracting the variable costs from the sales price and then multiplying by the number of units sold. For each pretzel, the contribution margin is $8 - $1 = $7. For 1900 pretzels, the total contribution margin is 1900 * $7 = $13,300.

Helga's Pretzels Sells Pretzels for $8