Sensabaugh Inc. ,a company that produces and sells a single product,has provided its contribution format income statement for January. If the company sells 1,600 units,its total contribution margin should be closest to:

Question

Sensabaugh Inc. ,a company that produces and sells a single product,has provided its contribution format income statement for January.  If the company sells 1,600 units,its total contribution margin should be closest to:

Quizplus · Accepted Answer

Variable expenses per unit = Variable expenses F1F1F1S1F1F1F10 Quantity sold
Variable expenses per unit = $59,400 F1F1F1S1F1F1F10 1,800 units = $33 per unit
Selling price per unit = Sales F1F1F1S1F1F1F10 Quantity sold
= $91,800 F1F1F1S1F1F1F10 1,800 units = $51 per unit
Unit CM = Selling price per unit - Variable expenses per unit
= $51 per unit - $33 per unit = $18 per unit
Total CM = Unit CM F1F1F1S1F1F1F10 Quantity sold
= $18 per unit F1F1F1S1F1F1F10 1,600 units = $28,800