Figure 16 - 1 The Cumberland Company provides the following information:
Refer to Figure 16-1. What is the total contribution margin for Cumberland?

Question

Figure 16 - 1 The Cumberland Company provides the following information:
 Refer to Figure 16-1. What is the total contribution margin for Cumberland?

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting the total variable expenses from the total sales revenue. In this case, the total sales revenue is given as $750,000 and the total variable expenses are given as $437,500.

Therefore, the contribution margin for Cumberland can be calculated as: 
$750,000 - $437,500 = $312,500

Hence, the correct answer is A) $312,500.

Figure 16 - 1 the Cumberland Company Provides the Following