Contribution margin is sales minus variable costs. Net revenue was $1,000,000, variable manufacturing costs were $400,000, and variable selling and administrative costs were $130,000. $1,000,000 ? $400,000 ? $130,000 = $470,000.
This is revenues minus variable manufacturing costs. The contribution margin is sales minus all variable costs, not just variable manufacturing costs.
This is the total variable costs. The contribution margin is sales minus variable costs.
This is the variable manufacturing costs. The contribution margin is sales minus variable costs.
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Based upon the information presented above, the contribution margin for the company was:
