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During its most recent fiscal year, Dover, Inc. had total sales of $3,260,000. Contribution margin amounted to $1,530,000 and pretax income was $445,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year

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ayokenny2001

Answer:

$1,730,000

Explanation:

Given that;

Total sales = $3,260,000

Contribution margin = $1,530,000

Pretax income = $445,000

We know that

Contribution margin = Total sales - variable cost

Fixing in the above values, we'll have

$1,530,000 = $3,260,000 - Variable cost

Variable cost = $3,260,000 - $1,530,000

Variable cost = $1,730,000

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