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