Given the following information, the total contribution margin is:

Sales Revenue $5,000

Variable cost of goods sold 2,700

Full cost of goods sold 2,900

Fixed selling and admin. expenses 1,100

Variable selling and admin. expenses 800

a. $1,500

b. $2,100

c. $3,900

d. $4,200

The correct answer is A.

Explanation:

Given the following information, the total contribution margin is:

Sales Revenue $5,000

Variable cost of goods sold 2,700

Full cost of goods sold 2,900

Fixed selling and admin. expenses 1,100

Variable selling and admin. expenses 800

Contribution margin = Sales revenue - total variable cost

CM = 5,000 - 2,700 - 800 = 1,500