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26 August, 03:02

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,300 units) $ 150,500 Variable expenses 73,100 Contribution margin 77,400 Fixed expenses 44,600 Net operating income $ 32,800 If the company sells 4,400 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

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  1. 26 August, 05:10
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    Contribution margin = 79,200

    Explanation:

    Giving the following information:

    The company produces and sells a single product.

    Sales (4,300 units) $150,500

    Variable expenses 73,100

    Contribution margin 77,400

    First, we need to determine the selling price and unitary variable expense:

    Selling price = 150,500/4,300 = $35

    Unitary variable cost = 73,100/4,300 = $17

    Now, for 4,400 units:

    Sales = (4,400*35) = 154,000

    Variable cost = (4,400*17) = (74,800)

    Contribution margin = 79,200
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