Vidyalelo
Management · Q243

Management Accounting

Graduate and Post Graduate · Management · question 243

Q243

If total revenue is 10000 and total variable cost is 4000, then contribution margin would be

A.
$25,000
B.
$14,000
Answer
C.
$6,000
D.
$8,400

Answer: Option B

Solution

Answer: Option B
Solution:
Contribution margin = Total revenue + Total variable cost
= 4000 = $14,000.