Quaker Corporation sold 6,600 units of its product at a price of $42.40 per unit.Total variable cost per unit is $19.25,consisting of $10.15 in variable production cost and $9.10 in variable selling and administrative cost.Compute contribution margin for the company.
A)$279,840
B)$119,130
C)$66,990
D)$152,790
E)$60,060

Question

Quizplus · Accepted Answer

Contribution Margin = Selling Price per Unit - Total Variable Cost per Unit
Contribution Margin = $42.40 - $19.25
Contribution Margin = $23.15 per unit

Total Contribution Margin = Contribution Margin per unit x Number of units sold
Total Contribution Margin = $23.15 x 6,600
Total Contribution Margin = $152,790

Therefore, the correct answer is D) $152,790.

Quaker Corporation Sold 6,600 Units of Its Product at a Price