Calculate Total Contribution Margin

What is the total contribution margin for 50 bouquets?

A. $750

B. $2,500

C. $4,250

D. $1,750

Answer:

A. $750

The contribution margin is the difference between the selling price of a product and its variable costs. In this case, Antonio's Flowers sells bouquets for $50 each, and the variable costs for each bouquet are $35.

To calculate the total contribution margin for 50 bouquets, we need to multiply the contribution margin per bouquet by the number of bouquets. The variable cost per bouquet is $35 and the selling price per bouquet is $50.

To find the contribution margin per bouquet, we subtract the variable cost per bouquet from the selling price per bouquet: $50 - $35 = $15. Therefore, the contribution margin per bouquet is $15.

Next, to find the total contribution margin for 50 bouquets, we multiply the contribution margin per bouquet by the number of bouquets: $15 * 50 = $750. So, the total contribution margin for 50 bouquets is $750.

← The impact of low barriers to entry on acme company How long does it take for funds to be available after an atm deposit →

More Posts: