Question
If sales revenue is $35,000, fixed cost is $5,000, and net operating income is $10,000, what is the contribution margin? A production worker is paid
If sales revenue is $35,000, fixed cost is $5,000, and net operating income is $10,000, what is the contribution margin? A production worker is paid a salary of $1500 per month, plus an additional $0.50 per hour for overtime. This type of cost is BEST termed as:
A. fixed cost
B. step cost
C. semi-variable cost
D. variable cost
Step by Step Solution
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Step: 1
The contribution margin is a business sales revenue less its variable costs The resulting contributi...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
