Calculating the Contribution Margin

The Mental Health program for the Community Center has just completed its fiscal year end. The Program Director determines that his program has revenue for the year of $$1,520,000.$ He believes his variable expense amounts to $$320,000$ and he knows his fixed expense amounts to $$1,300,000.$

Compute the contribution margin for the Community Center Mental Health program.

COMPUTATION

Program Revenue

Less Variable Expense

Contribution Margin

Less Fixed Cost

Operating Profit $-$ Loss