Asked by
rosen pierre
on Dec 16, 2024Verified
Armstrong Industries has a contribution margin of $240000 and a contribution margin ratio of 30%. How much are total variable costs?
A) $72000
B) $560000
C) $168000
D) $800000
Contribution Margin
The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is available to cover fixed costs and generate profit.
Variable Costs
These are expenses that vary directly with the level of production or sales volume; they rise as production increases and fall as production decreases.
- Leverage the contribution margin and its ratio when deliberating on decisions.
Verified Answer
MM
Learning Objectives
- Leverage the contribution margin and its ratio when deliberating on decisions.