Question: Can you explain the correct approach to solve this general accounting question? Davis Company's CVP income statement shows sales of 2,500 units at $80 per

Can you explain the correct approach to solve this general accounting question?

Davis Company's CVP income statement shows sales of 2,500 units at $80 per unit, variable expenses of $45 per unit, and fixed expenses of $50,000. What is the contribution margin? A) $87,500 B) $75,000 C) $50,000 D) $112,500

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