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Total contribution margin

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Cranbrook Company has the following data for the month of March:

Sales.......................................................... $30,000
Fixed manufacturing overhead................. $5,500
Direct labor................................................ $7,250
Fixed selling expense................................ $4,625
Variable manufacturing overhead............. $4,100
Variable administrative expense................ $4,800
Direct materials......................................... $5,150
Fixed administrative expense.................... $4,450
Variable selling expense............................ $4,975

Assume that direct labor is variable and all units are produced and sold in the same month.

What was the total contribution margin in March for Cranbrook Company?

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The solution explains the calculation of total contribution margin.

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Total contribution margin = Total sales - Total variable cost
Total variable cost is
Direct ...

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