Question:
The following information is available for Chap Company.
Sales $350,000
Cost of goods sold $120,000
Total fixed expenses $60,000
Total variable expenses $100,000
Which amount would you find on Chap's CVP income statement?
(a) Contribution margin of $250,000.
(b) Contribution margin of $190,000.
(c) Gross profit of $230,000.
(d) Gross profit of $190,000.