Question

Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (4,000 units) $ 112,000 Variable expenses 47,040 Contribution margin 64,960 Fixed expenses 46,800 Net operating income $ 18,160 If the company sells 4,700 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answer 1

Total contribution margin= $76,328

Step-by-step explanation:

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= 64,960 / 4,000

Unitary contribution margin= $16.24

Now, the total contribution margin for 4,700 units:

Total contribution margin= 16.24*4,700

Total contribution margin= $76,328