/My Courses ACC 505 SP2018 V Week Four - EXAM 1 /Exam1 has provided its contribu

Question

/My Courses ACC 505 SP2018 V Week Four - EXAM 1 /Exam1 has provided its contribution format income statement for June. The company produces and sells a single product. QU Question 26 Wight Corporation Not yet answered Points out of 3 P Flag question Sales (9,600 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 336,000 144,000 192,000 137,000 55,000 If the company sells 9,100 units, its total contribution margin should be closest to Select one O a $182,000 O b $192,000 ?. ? $52.135 O d. $174,500

Explanation / Answer

Ans. Option a $182000 *Calculation: Total contribution = Sales units * Contribution margin per unit 9100 * 20 182000 *Contribution margin per unit = Selling price per unit - Variable cost per unit 35 - 15 20 *Selling price per unit = Total sales / Sales units 336000 / 9600 35 *Variable cost per unit = Total variable cost / sales units 144000 / 9600 15

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.