Callis 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 $141.60 per unit. The best estimate of the total contribution margin when 5, 300 units are sold is:
A)$51, 940
B)$469, 050
C)$109, 710
D)$398, 560

Question

Callis 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 $141.60 per unit.  The best estimate of the total contribution margin when 5, 300 units are sold is:
A)$51, 940 
B)$469, 050 
C)$109, 710 
D)$398, 560

Quizplus · Accepted Answer

Contribution margin per unit = Selling price per unit - Variable cost per unit
= $141.60 per unit - $66.40 per unit
= $75.20 per unit
Total contribution margin = Contribution margin per unit × Unit sales
= $75.20 per unit × 5, 300 units
= $398, 560

Callis Corporation Is a Wholesaler That Sells a Single Product