Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: If 24, 000 units are sold during the third quarter and this activity is within the relevant range, Bee Company's expected contribution margin would be:
A)$646, 800
B)$762, 000
C)$810, 000
D)$760, 080

Question

Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below:   If 24, 000 units are sold during the third quarter and this activity is within the relevant range, Bee Company's expected contribution margin would be:
A)$646, 800 
B)$762, 000 
C)$810, 000 
D)$760, 080

Quizplus · Accepted Answer

Unit sales = $960, 000 ÷ $60 per unit = 16, 000 units
Cost of goods sold per unit = $420, 000 ÷ 16, 000 units = $26.25 per unit
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Bee Company Is a Honey Wholesaler