Mancuso Corporation has provided its contribution format income statement for January.The company produces and sells a single product. If the company sells 3,100 units,its total contribution margin should be closest to:
A)$27,045
B)$181,000
C)$162,400
D)$173,600

Question

Mancuso Corporation has provided its contribution format income statement for January.The company produces and sells a single product.  If the company sells 3,100 units,its total contribution margin should be closest to:
A)$27,045 
B)$181,000 
C)$162,400 
D)$173,600

Quizplus · Accepted Answer

Variable expenses per unit = Variable expenses F1F1F1S1F1F1F10 Quantity sold
= $107,300 F1F1F1S1F1F1F10 2,900 units = $37 per unit
Selling price per unit = Sales F1F1F1S1F1F1F10 Quantity sold
= $269,700 F1F1F1S1F1F1F10 2,900 units = $93 per unit
Unit CM = Selling price per unit - Variable expenses per unit
= $93 per unit - $37 per unit = $56 per unit
Total CM = Unit CM F1F1F1S1F1F1F10 Quantity sold
= $56 per unit F1F1F1S1F1F1F10 3,100 units = $173,600

Mancuso Corporation Has Provided Its Contribution Format Income Statement for January.The