geneva company reports the following information for july:\nsales $ 750,000\nvariable cost of goods sold…

geneva company reports the following information for july:\nsales $ 750,000\nvariable cost of goods sold 225,000\nfixed cost of goods sold 100,000\ncalculate the contribution margin for july.\nmultiple choice\n$525,000\n$425,000\n$650,000\n$750,000

geneva company reports the following information for july:\nsales $ 750,000\nvariable cost of goods sold 225,000\nfixed cost of goods sold 100,000\ncalculate the contribution margin for july.\nmultiple choice\n$525,000\n$425,000\n$650,000\n$750,000

Answer

Explanation:

Step1: Recall the formula for contribution margin

Contribution margin = Sales - Variable costs

Step2: Substitute the given values

Sales = $750,000$, Variable cost of goods sold = $225,000$ Contribution margin = $750000 - 225000$

Step3: Calculate the result

$750000 - 225000=525000$

Answer:

$525,000$