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Management · Q233

Management Accounting

Graduate and Post Graduate · Management · question 233

Q233

If total revenue is 9000, total variable cost is 2000, then contribution margin will be

A.
$11,000
B.
-$7000
C.
$4,500
D.
$7,000
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Contribution margin = Total revenue - Variable cost
= 2000 = $7,000.
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