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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

Accounting

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

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Answer:  D

Explanation:  D)

Sales                                              $27

Less Variable costs                      15

= Contribution Margin               12 × 8,500 = $102,000