5 The following selected data relates to Green with Envy Cor

5. The following selected data relates to Green with Envy Corporation: Total fixed costs $ 25,000 Selling price per unit $ 21 Variable costs per unit $ 18 If sales revenue per unit increases to $ 26 and 9,200 units are sold, what is the contribution margin? a. $239,200 b. $27,600 c. $73,600 d. $48,600

Solution

Option C is correct

Fixed Cost 25000
SP 21
VC 18
If sales price increases to $26, Units sold 9200
Contribution Margin
    = 9200*(26-21)
73600
5. The following selected data relates to Green with Envy Corporation: Total fixed costs $ 25,000 Selling price per unit $ 21 Variable costs per unit $ 18 If sa

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