Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,300 units) $ 150,500 Variable expenses 73,100 Contribution margin 77,400 Fixed expenses 44,600 Net operating income $ 32,800 If the company sells 4,400 units, its total contribution margin should be _____

Answer 1

its total contribution margin should be 79,200

Step-by-step explanation:

Our first goal:

Calculate the contribution margin per unit

`77,400/ 4,300 = CM \:per \:unit\\CM \:per \:unit = 18`

Then we multiply by the sold units to get the new budgeted contribution margin.

`Unit \: Sold * CM \:per \:unit = CM_(total)\\4,400 * 18 = 79,200`