Purchase Solution

TOTAL CONTRIBUTION MARGIN

Not what you're looking for?

Ask Custom Question

The employees aaaaaat Mobile Sun Lotion Company roam the beaches with a tank of premium suntan lotion strapped on their backs. For a $2 charge, the employees will spray sunbathers with suntan lotion. Last year, Mobile Sprayed 250,000 customer and incurred the following costs:
Total variable costs..........$175,000
Totoal fixed costs.............50,000
Total costs...................$225,000

Assuming that this activity is within the relevant range, what would Mobile's TOTAL CONTRIBUTION MARGIN have been last year if only 240,000 customers were sprayed?
A)$255,000
B)$262,000
C)$305,000
D)$312,000

Purchase this Solution

Solution Summary

A response helps in computing total contribution margin. Total contribution margin is examined.

Solution Preview

The employees aaaaaat Mobile Sun Lotion Company roam the beaches with a tank of premium suntan lotion strapped on their backs. For a $2 charge, the employees will spray sunbathers with suntan lotion. ...

Purchase this Solution


Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.