Please explain how you got the answer Thanks in advanceSolut

Please explain how you got the answer. Thanks in advance!

Solution

Contribution Margin Per Unit = Selling Price Per Unit - Variable Cost Per Unit

= $ 20 - $ 11

= $ 9

Total Units = 9,500 Units

Hence, Contribution Margin = Contribution Margin Per Unit * Total Units

= $ 9 * 9,500 Units

= $ 85,500

Hence the correct answer is D. $ 85,500