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The Sabian company manufactures cymbals and sells them to colleges for marching bands. This last quarter, Sabian sold $500,000 with variable costs of $200,000 and fixed costs of $150,000. What was Sabian’s contribution margin?

Respuesta :

Answer:

$300,000

Explanation:

Sales = $500,000

Fixed cost = $150,000

Variable cost = $200,000

Contribution margin = ?

Contribution Margin = Sales - Variable cost

                                  = $500,000 - $200,000

                                  = $300,000

Sabian’s contribution margin is $300,000

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