If total revenue is $10000 and total variable cost is $4000, then contribution margin would be
A. $25,000
B. $14,000
C. $6,000
D. $8,400
Answer: Option B
Solution(By Examveda Team)
Contribution margin = Total revenue + Total variable cost= $10000 + $4000 = $14,000.
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The answer should be $6000. The total revenue less the total variable cost is equal to contribution margin. Thank you!