If revenue = $135 and variable cost = 45% of revenue, then contribution margin = $79.25. a. True. b. False.

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 20.10EX
icon
Related questions
Question

Answer?

If revenue = $135 and variable cost
= 45% of revenue, then contribution
margin = $79.25.
a. True.
b. False.
Transcribed Image Text:If revenue = $135 and variable cost = 45% of revenue, then contribution margin = $79.25. a. True. b. False.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning