Answer:
$70,707
Explanation:
Given that,
Sales (3,300 units) = $ 128,700
Variable expenses = $65,637
Contribution margin = $63,063
Fixed expenses = $47,900
Net operating income = $15,163
Contribution margin per unit:
= Sales revenue per unit - Variable cost per unit
= ($ 128,700 ÷ 3,300) - ($65,637 ÷ 3,300)
= $39 - $19.89
= $19.11
If the company sells 3,700 units,
Total contribution margin:
= Contribution margin per unit × Number of units sold
= $19.11 × 3,700 units
= $70,707
