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Management · Q287

Management Accounting

Graduate and Post Graduate · Management · question 287

Q287

If contribution margin is 3000 and revenues are 9000, then all variable costs will be

A.
$12,000
B.
$6,000
Answer
C.
-$6000
D.
-$12000

Answer: Option B

Solution

Answer: Option B
Solution:
Variable costs = Revenue - Contribution margin
= 3000 = $6,000.