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Lunna [17]
3 years ago
7

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 350,000 Variable expenses 210,000 Con

tribution margin 140,000 Fixed expenses 110,000 Net operating income $ 30,000 What is total contribution margin if sales volume increases by 20%?
Business
1 answer:
Vedmedyk [2.9K]3 years ago
3 0

Answer:

What is total contribution margin = $168,000.00

Explanation:

<em>The contribution margin is the excess of the sales value over the variable cost of sales .</em>

<em>Contribution per unit = selling price  - variable cost between </em>

<em>Contribution margin (%) = contribution / sales × 100</em>

For Schister Systems

Increase in sales by 20% will give sales revenue worth

= 120% ×  350,000

=  420,000.00

Contribution margin (%)

= (350,000-210,000)/ 350,000   × 100

= 40%

Total contribution = 40% ×420,000.00

                             =  $168,000.00

What is total contribution margin = $168,000.00

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