Answer:
$185,000
Explanation:
Jame's company gross margin is $15,000 less than its contribution margin at a sales level of $300,000
It's net operating income is $50,000
Selling and administrative expenses is $120,000
The first step is to calculate the gross margin
= net operating income + selling and administrative expenses
= $50,000 + $120,000
= $170,000
Therefore, since the gross margin at the sales level is $15,000 less then the contribution margin can be calculated as follows
= $170,000 + $15,000
= $185,000
Hence the contribution margin at this sale level is $185,000
