Chapter 7 Assignment (A): Calculating the Contribution Margin Gree is variable c

Question

Chapter 7 Assignment (A): Calculating the Contribution Margin Gree is variable cost and 60 percent is fixed cost. nside Clinic has revenue totaling $3,500,000. The clinic has costs totaling $3,450,000. Of this amount, 40 percent Required Compute the contribution margin for Greenside Clinic. The categories are listed for you below. You must provide the dollar amount for each category by filling in the given number and/or performing the calculations. This assignments is also here in Word for downloading (Week 2 Assignment Adocx i) and filling in the correct amounts. Please submit a Word document to your instructor for grading. Amount Revenue Less variable cost Contribution margin Less fixed cost Operating income

Explanation / Answer

revenue = 3,500,000

less variable cost = 0.40*3,450,000 = 1,380,000

contribution margin = 2,120,000

less fixed cost = 0.60*3,450,000 = 2,070,000

operating income = 50,000.00

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