A farmer leased land and equipment for $500,000 and expected to produce 400,000 bushels of wheat. The variable cost of production is $1.50 per bushel. After the land and equipment had been paid for, the farmer discovered the selling price of wheat was $2.25. Using this scenario, what is the contribution margin from selling the wheat?

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Multiple Choice

A farmer leased land and equipment for $500,000 and expected to produce 400,000 bushels of wheat. The variable cost of production is $1.50 per bushel. After the land and equipment had been paid for, the farmer discovered the selling price of wheat was $2.25. Using this scenario, what is the contribution margin from selling the wheat?

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