The management of Harper Corporation, a manufacturing company, has provided the following financial data for December:
The contribution margin for December was:
A) $204,000
B) $64,000
C) $340,000
D) $319,000

Question

The management of Harper Corporation, a manufacturing company, has provided the following financial data for December: 
The contribution margin for December was:
A) $204,000 
B) $64,000 
C) $340,000 
D) $319,000

Quizplus · Accepted Answer

Contribution margin = Total sales - Total variable expenses
In the given data:
Total sales = $544,000
Total variable expenses = $204,000 + $40,000 + $60,000 = $304,000
Contribution Margin = $544,000 - $304,000 = $240,000
Therefore, the correct answer is (C) $340,000, which is the closest option.

The Management of Harper Corporation, a Manufacturing Company, Has Provided