Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. If the company sells 4,600 units, its total contribution margin should be closest to:

A) $54,600
B) $59,800
C) $69,400
D) $13,362

Question

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.

If the company sells 4,600 units, its total contribution margin should be closest to:

A) $54,600
B) $59,800
C) $69,400
D) $13,362

Shobha Mukherjee · Accepted Answer

Final Answer : B, Explanation :  Selling price per unit = Sales ÷ Quantity sold= $155,400 ÷ 4,200 units = $37 per unitVariable expenses per unit = Variable expenses ÷ Quantity soldVariable expenses per unit = $100,800 ÷ 4,200 units = $24 per unitUnit CM = Selling price per unit - Variable expenses per unit= $37 per unit - $24 per unit = $13 per unitTotal CM = Unit CM × Quantity sold= $13 per unit × 4,600 units = $59,800

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. If the company sells 4,600 units, its total contribution margin should be closest to:

A) $54,600
B) $59,800
C) $69,400
D) $13,362

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Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. If the company sells 4,600 units, its total contribution margin should be closest to:A) $54,600B) $59,800C) $69,400D) $13,362

Definitions

Learning Objectives

Learning Objectives

Related questions

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. If the company sells 4,600 units, its total contribution margin should be closest to:

A) $54,600
B) $59,800
C) $69,400
D) $13,362