Question

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 350,000 Variable expenses 210,000 Contribution margin 140,000 Fixed expenses 110,000 Net operating income $ 30,000 What is total contribution margin if sales volume increases by 20%?

Answer 1

Answer:

What is total contribution margin = $168,000.00

Explanation:

The contribution margin is the excess of the sales value over the variable cost of sales .

Contribution per unit = selling price  - variable cost between

Contribution margin (%) = contribution / sales × 100

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