Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,300 units) $ 150,500 Variable expenses 73,100 Contribution margin 77,400 Fixed expenses 44,600 Net operating income $ 32,800 If the company sells 4,400 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answer 1

Contribution margin= 79,200

Step-by-step explanation:

Giving the following information:

The company produces and sells a single product.

Sales (4,300 units) $150,500

Variable expenses 73,100

Contribution margin 77,400

First, we need to determine the selling price and unitary variable expense:

Selling price= 150,500/4,300= $35

Unitary variable cost= 73,100/4,300= $17

Now, for 4,400 units:

Sales= (4,400*35)= 154,000

Variable cost= (4,400*17)= (74,800)

Contribution margin= 79,200