Respuesta :
Answer:
contribution margin is $317400
Explanation:
given data
sold unit = 11500
price = $77.00 per unit
Total variable cost = $49.40 per unit
variable production cost = $39.70
variable selling and administrative cost = $9.70
to find out
contribution margin for this company
solution
we know sale is 11500 unit at @ $77.00 per unit
so total sale price is = 11500 × 77 = $885500 ...............1
total cost of variable production cost for 11500 unit = 11500 × 39.70
total cost of variable production cost = $456550 .................2
and
total variable selling and administrative cost is = 11500 × 9.70
total variable selling and administrative cost = $111550 .....................3
so contribution margin from equation 1, 2 and 3 is
contribution margin = 885500 - ( 456550 + 111550 )
contribution margin is $317400
