Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
Company has a contribution margin of $70,000.
Contribution margin = Revenue – Variable Costs
= $120,000- $ 50,000
= $70,000
The portion of a product's sales revenue that isn't used to cover variable costs and instead goes toward covering the company's fixed costs is known as the contribution margin. Major component of break-even analysis is the idea of contribution margin.
Labor-intensive company with few fixed expenses tend to have low contribution margins, whereas capital-intensive, industrial businesses have more fixed costs and, thus, higher contribution margin. The difference between a product's sale price and the variable costs related to its manufacture and sale is calculated as the contribution margin.
To learn more about contribution margin, click here
https://brainly.com/question/17204241
#SPJ4
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
