Lepage Corporation has provided its contribution format income statement for January.The company produces and sells a single product. If the company sells 4, 700 units, its total contribution margin should be closest to:

Question

Lepage Corporation has provided its contribution format income statement for January.The company produces and sells a single product.  If the company sells 4, 700 units, its total contribution margin should be closest to:

Quizplus · Accepted Answer

Selling price per unit = Sales ÷ Quantity sold
= $211, 200 ÷ 4, 400 units = $48 per unit
Variable expenses per unit = Variable expenses ÷ Quantity sold
= $127, 600 ÷ 4, 400 units = $29 per unit
Unit CM = Selling price per unit - Variable expenses per unit
= $48 per unit - $29 per unit = $19 per unit
Total CM = Unit CM × Quantity sold
= $19 per unit × 4, 700 units = $89, 300

Lepage Corporation Has Provided Its Contribution Format Income Statement for January.The