If You Sell $2,500 of Product, Pay COGS of $800

question 50

Multiple Choice

If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?

• A) $1,700
• B) $2,050
• C) $1,250
• D) $2,450

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Definitions:

Pay Range

The spectrum of wages set by an employer for a specific job or grade, showing the minimum, midpoint, and maximum salary that can be earned.

Pay For Talent

A compensation strategy that rewards employees based on their skills, expertise, and contributions.

Employee Expectations

Refers to the assumptions and desires employees have regarding their work, roles, and the organization they work for, influencing their job satisfaction and performance.

Profitability

A financial metric that measures the degree to which a company or a business activity makes money, indicating the efficiency in generating profits.