An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?
A) $350,000
B) $500,000
C) $850,000
D) $1,200,000

Question

Quizplus · Accepted Answer

The contribution margin per unit is $12 - $7 = $5. Therefore, the total contribution margin is 100,000 units * $5 = $500,000.

An Organization Is Projecting Sales of 100,000 Units, at a Unit