Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of contribution margin for 20,000 units would be: A. $165,000 B. $150,000 C. $117,272 D. $181,500 E. $141,900

sales at 20,000 = 150,000

contribution margin at 20,000 units = 60,000

I guss you post the possible choise of another question or the question was asking for sales and you type contribution margin.

Anyway, those are the number for sales at 20,000

Explanation:

variable cost per unit:

$99,000/22,000 = 4.5 per unit

sales - variable cost - fixed cost = operating income

sales - 99,000 - 30,000 = 36,000

sales = 99,000 + 30,000 + 36,000 = 165,000

sales per unit

165,000 / 22,000 = 7.5

sales at 20,000 x 7.5 = 150,000

7.5 - 4.5 = 3 contribution per unit

at 20,000 units:

20,000 x 3 = 60,000