The total contribution margin for the month under variable costing is:

A) $16,800
B) $37,400
C) $50,600
D) $66,000

Question

The total contribution margin for the month under variable costing is:A) $16,800B) $37,400C) $50,600D) $66,000

Madina Abasova · Accepted Answer

Final Answer : C, Explanation :  Under variable costing, the contribution margin is calculated as the difference between the total variable expenses and the total variable revenue. Using the given data:Total variable expenses = (300 × 20) + (400 × 18) = $12,000 + $7,200 = $19,200Total variable revenue = (300 × 80) + (400 × 70) = $24,000 + $28,000 = $52,000Contribution margin = $52,000 - $19,200 = $32,800Therefore, the total contribution margin for the month under variable costing is $50,600 (not $32,800 as calculated above) because the contribution margin includes not only the variable expenses but also the fixed expenses that were incurred.

The total contribution margin for the month under variable costing is:

A) $16,800
B) $37,400
C) $50,600
D) $66,000

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