Question

$30,322 $73,800 $75,600 $76,900 Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. Sales (4,100 units) $ 127,100 Variable expenses 53,300 Contribution margin 73,800 Fixed expenses 44,200 Net operating income $ 29,600 If the company sells 4,200 units, its total contribution margin should be closest to:

Answer 1

Answer:

$75,600

Explanation:

We divide the total sales with the number of units to get the unit price . Similarly we get the unit price for the variable costs. But as the fixed costs remain constant they will not change. We get the contribution margin  =$75,600

Lasseter Corporation

Contribution Format Income Statement for August

Sales (4,200 units) $ 127,100 /4100= $31 * 4200  $ 130200

Variable expenses (53,300/4100)*4200 = $ 54600

Contribution margin 75,600

Fixed expenses 44,200

Net operating income $ 31,400

Lasseter Corporation

Contribution Format Income Statement for August

Sales (4,100 units) $ 127,100

Variable expenses 53,300

Contribution margin 73,800

Fixed expenses 44,200

Net operating income $ 29,600