Question 161307
Contribution margin is Total Sales - Total Variable Cost...

Total Sales = 5,000 shirts per year * 50 dollars a shirt
Total Sales = $250,000

Total Variable Cost = 30% of $380,000
Total Variable Cost = .30 * 380,000
Total Variable Cost = $114,000

Contribution margin = $250,000 - $114,000

Contribution margin = $136,000

:)