Carmichael Company has the following information available: Revenue $480,000 Variable production costs $320,000 Fixed production costs $100,000 Variable selling costs $20,000 Fixed selling costs $30,000 What is the contribution margin? $460,000 $160,000 $60,000 $140,000 Solution Contribution MArgin = Revenue - variable Cost VAriable cost includes the variable production cost + variable selling cost Total Variable cost = 320000 + 20000 = $340000 Contribution Margin = 480000 - 340000 = $140000 Option D is the answer. .