Carmichael Company has the following information available: Revenue $480,000 Variable production costs $320,000 Fixed production costs $100,000 Variable selling costs $20,000 Fixed selling costs $30,000 What is the contribution margin? $460,000 $160,000 $60,000 $140,000 Solution Contribution MArgin = Revenue - variable Cost VAriable cost includes the variable production cost + variable selling cost Total Variable cost = 320000 + 20000 = $340000 Contribution Margin = 480000 - 340000 = $140000 Option D is the answer. .

1. Carmichael Company has the following information available:
Revenue
$480,000
Variable production costs
$320,000
Fixed production costs
$100,000
Variable selling costs
$20,000
Fixed selling costs
$30,000
What is the contribution margin?
$460,000
$160,000
$60,000
$140,000
Revenue $480,000
Variable production costs $320,000
Fixed production costs $100,000
Variable selling costs $20,000
Fixed selling costs $30,000

2. Solution
Contribution MArgin = Revenue - variable Cost
VAriable cost includes the variable production cost + variable selling cost
Total Variable cost = 320000 + 20000 = $340000
Contribution Margin = 480000 - 340000 = $140000
Option D is the answer.