What is the contribution margin


Vazquez Company's cost of goods sold is $350,000 variable and $200,000 fixed. The company's selling and administrative expenses are $250,000 variable and $300,000 fixed. If the company's sales are $1,400,000, what is its contribution margin?

a. $300,000

b. $800,000

c. $850,000

d. $900,000

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Accounting Basics: What is the contribution margin
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