Sales were $500,000. the variable cost of goods sold was $300,000. the variable selling and administrative expenses were $75,000. fixed costs were $60,000. using variable costing, what is the contribution margin?
a) $65,000
b) undeterminable with given information
c) $200,000
d) $125,000

D) $125,000

Explanation:

The computation of the contribution margin is shown below:

= Sales revenue -  variable cost of goods sold  - variable selling and administrative expenses

= $500,000 - $300,000 - $75,000

= $125,000

The fixed cost expense should not be considered under the variable costing method, so ignored it.

Simply the contribution margin = Total revenues - total variable cost

Hence, the correct option is D.

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explanation:

dew

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.