Contribution margin

Select one:

a. equals sales revenue minus variable costs.

b. excludes variable selling costs from its calculation.

c. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit.

d. is always the same as gross profit margin

Shine Jewelry sells 400 units resulting in $7,000 of sales revenue, $3,000 of variable costs, and $1,500 of fixed costs. Total Contribution margin equal:

Select one:

a. $8.00

b. $4,000

c. $3,000

d. $4.00