Starwalt Corporation produces and sells a single product. The company has provid

Question

Starwalt Corporation produces and sells a single product. The company has provided its contribution format income statement for March.

If the company sells 7,900 units, its total contribution margin should be closest to:

A) $77,051

B) $322,200

C) $316,000

D) $308,000

Starwalt Corporation produces and sells a single product. The company has provided its contribution format income statement for March. If the company sells 7,900 units, its total contribution margin should be closest to: A) $77,051 B) $322,200 C) $316,000 D) $308,000

Explanation / Answer

Selling Price per unit =546700/7700 =71 Variable expense =238700/7700 =31 total contribution margin = 7,900*(71-31)= $316,000 C) $316,000

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