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TX Honey Inc. sells 3,000 bottles of honey bee for $70 each that incur variable costs...

TX Honey Inc. sells 3,000 bottles of honey bee for $70 each that incur variable costs of $45 each. The company spent $40,000 for manufacturing facilities. What is contribution margin for manufacturing the products?

a.

62,000
b.

66,000
c.

70,000
d.

75,000
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Answer #1

Contribution margin

= Sales revenue - Variable costs

= (3,000*70) - (3,000*45)

= 210,000 - 135,000

= 75,000
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