Answer:
Total Contribution margin= $154,700
Explanation:
Giving the following information:
Based on a predicted level of production and sales of 19,000 units, a company anticipates total variable costs of $70,300, fixed costs of $32,300, and operating income of $140,600.
First, we need to calculate the selling price and unitary variable cost:
Unitary variable cost= 70,300/19,000= $3.7
Sales= Operating income + fixed costs + variable cost
Sales= 140,600 + 32,300 + 70,300= 243,200
Unitary selling price= 243,200/19,000= $12.8
Now, we can calculate the total contribution margin for 17,000 units.
Total Contribution margin= 17,000*(12.8 - 3.7)= $154,700
