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Total contribution margin

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?

Solution Preview

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

Solution Summary

The solution explains the calculation of total contribution margin.

$2.19