Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:
-If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be:
A) $30,750
B) $74,250
C) $26,750
D) $96,500

Question

Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: 
-If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be:
A) $30,750 
B) $74,250 
C) $26,750 
D) $96,500

Quizplus · Accepted Answer

The contribution margin is calculated by multiplying the number of units by the contribution margin per unit. If Buffo's contribution margin per unit is $10.25, then 3,000 units would result in a contribution margin of $30,750 (3,000 units x $10.25 per unit).

Buffo Company Fabricates Metal Folding Chairs