Spartan Systems reported total sales of $370,000, at a price of $25 and per unit

Question

Spartan Systems reported total sales of $370,000, at a price of $25 and per unit variable expenses of $16, for the sales of their single product Unit $370,000 $25 236,80016 Total Sales Variable expenses Contribution margin 133,200 $9 Fixed expenses 107000 Net operating income $26,200 what is the amount of contribution margin if sales volume increases by 20%? (Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number) O $150750 O $52.500 O $159.840o O $35,000

Explanation / Answer

current sales volume = sales /selling price

              = 370000/25

              = 14800 units

New sales volume = 14800 [1+.20] = 17760 units

Contribution = new sales volume *contribution per unit

      = 17760*9

        = $ 159840

correct option is "C"

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.