Question

1. Susie Ques Inc., a company that produces and sells a single product, has provided its contribution format income statement for October: Sales (6,200 units) $136,400 Variable expenses $80,600 Contribution margin $55,800 Field expenses $48,700 Net operating income $7,100 If the company sells 5,800 units, its total contribution margin should be how much money

Answer 1

52,200

Step-by-step explanation:

Calculation to determine total contribution margin

First step is to calculate the contribution margin per unit

Contribution margin per unit=($136,400/6,200 )-($80,600/6,200)

Contribution margin per unit= $22 per unit- $13 per unit

Contribution margin per unit = 9

Now let determine the total contribution margin

Total contribution margin=5,800 x 9

Total contribution margin = 52,200

Therefore total contribution margin should be $52,200