Question

Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. Sales (5,100 units) $ 163,200 Variable expenses 71,400 Contribution margin 91,800 Fixed expenses 46,200 Net operating income $ 45,600 If the company sells 5,200 units, its total contribution margin should be closest to:

Answer 1

$93,600

Step-by-step explanation:

The computation of the total contribution margin is shown below:

Given that

For 5,100 sales unit, the contribution margin is $91,800

So, for 5,200 sales units, the contribution margin would be

= Contribution margin × new sales units ÷ previous sales units

= $91,800 × 5,200 units ÷ 5,100 units

= $93,600

All other information which is given is not relevant. Hence, ignored it