Question

The Sabian company manufactures cymbals and sells them to colleges for marching bands. This last quarter, Sabian sold $500,000 with variable costs of $200,000 and fixed costs of $150,000. What was Sabian’s contribution margin?

Answer 1

$300,000

Step-by-step explanation:

Sales = $500,000

Fixed cost = $150,000

Variable cost = $200,000

Contribution margin = ?

Contribution Margin = Sales - Variable cost

= $500,000 - $200,000

= $300,000

Sabian’s contribution margin is $300,000