Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,500 units) $ 180,000 Variable expenses 81,000 Contribution margin 99,000 Fixed expenses 45,000 Net operating income $ 54,000 If the company sells 4,600 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Answer 1

Answer:

$101,200

Explanation:

First, we need to calculate the total contribution margin per unit

Contribution margin per unit = 99,000 ÷ 4,500

Contribution margin = $22 per unit

Then, we will multiply with the units sold to get the budgeted contribution margin

= Units sold × Contribution margin per unit

= 4,600 × $22

= $101,200

Therefore, its total contribution margin should be closest to $101,200