Fintel produces dry erase markers that have a selling price of $2.35 and a variable cost of $.70. The contribution margin is Blank______.Multiple choice question.$1.6529.79%$3.05
Question
Fintel produces dry erase markers that have a selling price of .70. The contribution margin is Blank______.Multiple choice question.3.05
Solution
The contribution margin is calculated by subtracting the variable cost from the selling price.
So, in this case, the contribution margin would be 0.70 (variable cost) = $1.65.
Therefore, the contribution margin is $1.65.
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