sseter Corporation has provided its contribution format inco

sseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product Sales (5,000 units) $ 150,000 Variable expenses 65,000 Contribution margin Fixed expenses 85,000 46,000 Net operating income $ 39,000 If the company sells 5,100 units, Its total contribution margin should be closest to O $39780 O $85,000 O $86,700 O $88,000

Solution

Unit contribution margin = 85000/5000= $17 Total contribution margin = 5100*17= $86700 Option 3 is correct