Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $151.60 per unit.
-The best estimate of the total contribution margin when 6,300 units are sold is:
A)$450,450
B)$518,490
C)$121,590
D)$66,780

Question

Callander Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $151.60 per unit.  
-The best estimate of the total contribution margin when 6,300 units are sold is:
A)$450,450 
B)$518,490 
C)$121,590 
D)$66,780

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit - Variable cost per unit
= $151.60 per unit - $80.10 per unit
= $71.50 per unit
Total contribution margin = Contribution margin per unit F1F1F1S1F1F1F10 Unit sales
= $71.50 per unit F1F1F1S1F1F1F10 6,300 units
= $450,450

Callander Corporation Is a Wholesaler That Sells a Single Product