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vova2212 [387]
3 years ago
6

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 Variable expenses 280,000 Con

tribution margin 120,000 Fixed expenses 100,000 Net operating income $ 20,000 What is total contribution margin if sales volume increases by 20%
Business
1 answer:
sweet-ann [11.9K]3 years ago
3 0

Answer:

Contribution margin= 144,000

Explanation:

Giving the following information:

Total Sales $ 400,000

Variable expenses 280,000

Contribution margin 120,000

To calculate the new contribution margin, we need to increase sales and variable cost by 20%

Total sales= 400,000*1.20= 480,000

Variable expense= 280,000*1.2= (336,000)

Contribution margin= 144,000

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