Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. If the company sells 3,800 units, its total contribution margin should be closest to:
A)$16,227
B)$59,200
C)$60,800
D)$62,100

Question

Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product.  If the company sells 3,800 units, its total contribution margin should be closest to:
A)$16,227 
B)$59,200 
C)$60,800 
D)$62,100

Quizplus · Accepted Answer

To calculate the total contribution margin if the company sells 3,800 units, we need to use the contribution margin per unit. From the income statement, we can see that the contribution margin per unit is $16 ($35 - $19).

So, for 3,800 units, the total contribution margin would be:

$16 x 3,800 = $60,800

Therefore, the closest option to the calculated total contribution margin is option C) $60,800.

Lasseter Corporation Has Provided Its Contribution Format Income Statement for August