Spartan Systems reported total sales of $480,000, at a price of $30 and per unit

Question

Spartan Systems reported total sales of $480,000, at a price of $30 and per unit variable expenses of $21, for the sales of their single product. Total Per Unit Sales $480,000 $30 Variable expenses 336,000 21 Contribution margin 144,000 $9 Fixed expenses 118,000 Net operating income $26,000 What is the amount of contribution margin if sales volume increases by 40%? (Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number.) rev: 03_17_2016_QC_CS-44872, 03_18_2016_QC_CS-44872 $34,500 $80,500 $201,600 $175,500

Explanation / Answer

Contribution margin if sales voume increases by 40% = Contribution per unit * new sales volume

= $ 9* $480,000/$30 * 140%

= $201,000

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