Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,500 units) $ 180,000 Variable expenses 81,000 Contribution margin 99,000 Fixed expenses 45,000 Net operating income $ 54,000 If the company sells 4,600 units, its total contribution margin should be closest to

Answer 1

Answer: its total contribution margin should be closest to $ 266,800.

Step-by-step explanation:

Contribution = (Sales )+ (Variable expenses)

= $180,000+ $81,000

= $261,000

Contribution margin ratio = Contribution divided by Sales

=
`(261000)/(180000)`

= 1.45

Now Contrbution for 4,600 units =
`(Sales\ for \ 4500\ units* 4600)/(4500)* 1.45`

`=(180000*4600)/(4500)*1.45\\\\\\=266800`

its total contribution margin should be closest to $ 266,800.