Question

Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,600 units) $ 97,200 Variable expenses 50,544 Contribution margin 46,656 Fixed expenses 37,300 Net operating income $ 9,356 If the company sells 4,100 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answer 1

Answer:

Total contribution margin= $53,136

Explanation:

Giving the following information:

Sales (3,600 units) $ 97,200

Variable expenses 50,544

Contribution margin 46,656

First, we need to calculate the unitary variable cost and the selling price.

Selling price= $27

Unitary variable cost= $14.04

Now, we can calculate the total contribution margin for 4,100 units.

Total contribution margin= 4,100*(27 - 14.04)

Total contribution margin= $53,136