Carmichael Company has the following information available: Revenue $400,000 Variable production costs $100,000 Fixed production costs $110,000 Variable selling costs $35,000 Fixed selling costs $12,000 What is the contribution margin? $365,000 $190,000 $265,000 $300,000 Solution Contribution margin is total revenue - total variable cost. Revenue                                              $400,000 (-) Variable production cost         -$100,000 (-) Variable Selling Cost -$35,000 Contribution margin                       $265,000 .

1. Carmichael Company has the following information available:
Revenue
$400,000
Variable production costs
$100,000
Fixed production costs
$110,000
Variable selling costs
$35,000
Fixed selling costs
$12,000
What is the contribution margin?
$365,000
$190,000
$265,000
$300,000
Revenue $400,000
Variable production costs $100,000
Fixed production costs $110,000
Variable selling costs $35,000
Fixed selling costs $12,000

2. Solution
Contribution margin is total revenue - total variable cost.
Revenue $400,000
(-) Variable production cost -$100,000
(-) Variable Selling Cost -$35,000
Contribution margin $265,000