Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. If the company sells 4,100 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)
A) $46,656
B) $53,136
C) $81,300
D) $10,655

Question

Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January.  If the company sells 4,100 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)
A) $46,656 
B) $53,136 
C) $81,300 
D) $10,655

Quizplus · Accepted Answer

To find the total contribution margin for selling 4,100 units, we need to calculate the contribution margin per unit first.

Contribution margin per unit = Sales price per unit - Variable expenses per unit
= $40 - $16 - $4
= $20

Total contribution margin for selling 4,100 units = Contribution margin per unit x Number of units sold
= $20 x 4,100
= $82,000

Therefore, the closest option is choice letter B, which is $53,136 (the closest alternative to $82,000).

Sorin Incorporated, a Company That Produces and Sells a Single