Speedy Supplies sells a product at a price of $150. It's variable manufactured cost is $30 and the variable marketing cost per unit is $17.50 with fixed cost per period of $60,000. What would be the change in operating income under variable costs if sales increase from 10,000 to 10,500 units?
A) $60,000
B) $51,250
C) $66,250
D) Loss of $8,750

Question

Quizplus · Accepted Answer

The contribution margin is $102.50 per unit ($150 - 30 - 17.50) x (10,000 - 10,500) = $51,250

Speedy Supplies Sells a Product at a Price of $150