Helga's Pretzels sells pretzels for $5

Accounting Mar 01, 2021

Helga's Pretzels sells pretzels for $5. The variable costs for each pizza are $3, while the total fixed costs are $1,500. The contribution margin for 1,500 pretzels is

A) $1,500.

B) $3,000.

C) $7,500.

D) $6,000.

Expert Solution

Answer: B

Explanation: B)

Sales $5

Less Variable costs 3

= Contribution Margin 2 × 1,500 = $3,000

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