Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,400 units) $ 162,800 Variable expenses 79,200 Contribution margin 83,600 Fixed expenses 44,800 Net operating income $ 38,800 If the company sells 4,500 units, its total contribution margin should be closest to:

Answer 1

85,500

Step-by-step explanation:

Calculation for the total contribution margin

First step is to find the Contribution Margin Per Unit

Contribution Margin Per Unit = 83,600 /4,400 Contribution Margin Per Unit= 19 Per units

Second step is to calculate for Contribution Margin at 4,500 Units

Contribution Margin at 4,500 Units

= 19*4,500

Contribution Margin at 4,500 Units = 85,500

Therefore the total contribution margin is closest to 85,500