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During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$1,900,000.

$2,800,000.

$1,300,000.

$1,100,000.

$1,700,000.

Respuesta :

Answer:

variable cost = $1,700,000

Explanation:

given data

total sales = $3,200,000

Contribution margin = $1,500,000

pretax income = $400,000

to find out

variable costs in the company's contribution margin income statement

solution

we know that contribution margin is express as

contribution margin = total sales - variable cost     .............................1

put here value and we get variable cost

variable cost = $3,200,000 - $1,500,000

variable cost = $1,700,000

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