Question

Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8,400 units)$ 764,400 Variable expenses445,200 Contribution margin319,200 Fixed expenses250,900 Net operating income$ 68,300 If the company sells 8,200 units, its total contribution margin should be closest to:

Answer 1

Answer:

$319,200

Explanation:

Total Contribution Margin = Total Sales - Total Variable Costs

therefore,

Total Contribution Margin =  $ 764,400 - $445,200

                                             = $319,200

Conclusion

Escareno Corporation total contribution margin should be closest to $319,200.