Given the following information, the total contribution margin is:

sales revenue $5,000
variable cost of goods sold 2,700
full cost of goods sold 2,900
fixed selling and admin. expenses 1,100
variable selling and admin. expenses 800
a. $1,500
b. $2,100
c. $3,900
d. $4,200

The correct answer is A.

Explanation:

Given the following information, the total contribution margin is:

Sales Revenue $5,000

Variable cost of goods sold 2,700

Full cost of goods sold 2,900

Fixed selling and admin. expenses 1,100

Variable selling and admin. expenses 800

Contribution margin= Sales revenue - total variable cost

CM= 5,000 - 2,700 - 800= 1,500

answer; the above statement is (true);

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