Question

Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.Sales (4,200 units) $155,400Variable expenses 100,800Contribution margin 54,600Fixed expenses 42,400Net operating income $ 12,200If the company sells 4,600 units, its total contribution margin would be:___________A) $54,600B) $59,800C) $69,400D) $13,362

Answer 1

B. $59,800

Step-by-step explanation:

We can get the total contribution margin by;

= [ Contribution margin / Sales (units) ] × Sales sold by the company

= ( $54,600 / 4,200 ) × 4,600

= $59,800