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ABC Companys total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2
ABC Companys total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2 million. The Eastern territory has sales volume that equals $1 million and direct expenses of $200,000. In a marketing cost analysis, the contribution margin of the Eastern territory is:
A. | zero (no profit) | |
B. | $800,000 | |
C. | $300,000 | |
D. | $100,000 | |
E. | $500,000 |
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