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Homework answers / question archive / The following selected data relates to Ivory Corporation: Total fixed costs $25,000 Selling price per unit $22 Variable costs per unit $15 If sales revenue per unit increases to $27 and 8,500 units are sold, what is the contribution margin? A) $357,000 B) $77,000 C) $59,500 D) $102,000
The following selected data relates to Ivory Corporation:
Total fixed costs |
$25,000 |
Selling price per unit |
$22 |
Variable costs per unit |
$15 |
If sales revenue per unit increases to $27 and 8,500 units are sold, what is the contribution margin?
A) $357,000
B) $77,000
C) $59,500
D) $102,000
Answer: D
Explanation: D)
Sales $27
Less Variable costs 15
= Contribution Margin 12 × 8,500 = $102,000