If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?
A) $1,700
B) $2,050
C) $1,250
D) $2,450

Question

Quizplus · Accepted Answer

The contribution margin is calculated as sales minus variable costs. Here, variable costs include COGS ($800) and other variable costs ($450), totaling $1,250. Subtracting this from sales ($2,500) gives a contribution margin of $1,250.

If You Sell $2,500 of Product, Pay COGS of $800