The Cumberland Company Provides the Following Information What Is the Total Contribution Margin for Cumberland?
A)$312,500
B)$250,000

question 99

Multiple Choice

The Cumberland Company provides the following information: $\begin{array} { l } \text {Sales (250,000 units) }&\$625,000\\ \text {Manufacturing costs: }&\\ \text {Variable }&212,500\\ \text { Fixed}&37,500\\ \text {Selling and administrative costs: }&\\ \text {Variable }&100,000\\ \text { Fixed}&25,000\\\end{array}$

What is the total contribution margin for Cumberland?

• A)$312,500
• B)$250,000
• C)$625,000
• D)$50,000

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Definitions:

Purchase Discounts

A deduction from the original purchase price allowed by the seller to the buyer, typically for early payment or bulk purchasing.

Merchandise Inventory

Goods held by a retailer or wholesaler that are available for sale to customers.

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory immediately through the use of computer systems.

Cost of Merchandise Sold

A reiteration focusing on the total expenses incurred by a company to sell its merchandise, including the cost of the goods themselves and any additional costs related to their sale.