Windspring Spas,Inc Calculate the Contribution Margin for August

question 51

Multiple Choice

Windspring Spas,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 590,000 \\\hline \text { Variable Costs } & 160,000 \\\hline \text { Fixed Costs } & 50,000 \\\hline\end{array}$$ Calculate the contribution margin for August.

• A)$110,000
• B)$430,000
• C)$380,000
• D)$540,000

---

Definitions:

Accounts Receivable

Funds that a company's clients have not yet paid for products or services that have already been provided to them.

Allowance Method

An accounting technique that estimates and sets aside a portion of a company's receivables as uncollectable, acknowledging potential credit losses.

Uncollectible Account Receivable

An uncollectible account receivable is a debt owed to a company that it is unable to collect, typically leading to its classification as a bad debt expense.

Write Off

The accounting action of declaring that an asset is no longer collectible and recording its worth as zero, resulting in it being expensed.