Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. If the company sells 9,100 units, its total contribution margin should be closest to:

Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product.  If the company sells 9,100 units, its total contribution margin should be closest to:

Quizplus · Accepted Answer

Selling price per unit = $336,000 ÷ 9,600 units = $35 per unit
Variable expense per unit = $144,000 ÷ 9,600 units = $15 per unit
Unit CM = $35 per unit - $15 per unit = $20 per unit
Contribution margin = $20 per unit × 9,100 units = $182,000

Wight Corporation Has Provided Its Contribution Format Income Statement for June