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sorin incorporated, a company that produces and sells a single product, has provided its contribution format income statement for january. sales (3,400 units) $ 88,400 variable expenses 43,316 contribution margin 45,084 fixed expenses 33,400 net operating income $ 11,684 if the company sells 3,800 units, its total contribution margin should be closest to:
sorin incorporated, a company that produces and sells a single product, has provided its contribution format income statement for january. sales (3,400 units) $ 88,400 variable expenses 43,316 contribution margin 45,084 fixed expenses 33,400 net operating income $ 11,684 if the company sells 3,800 units, its total contribution margin should be closest to:
Ifcompanysells 3,800 units of the product, then its totalcontribution marginshould be closest to (a) $50388.The "Contribution-Margin" is defined as the amount ofrevenuewhich remains after deducting all variable costs associated with producing and selling a product.The total number ofunits soldis = 3400 units,The Contributionmarginper unitis = $45084/3400 = $13.26,We have to find the total contribution margin for 3800 units,So, The total contribution margin = 13.26 × 3800= $50388,Therefore, the requiredcontribution-marginis $50388, the correct option is (a).Learn more aboutContribution Marginherebrainly.com/question/16632966#SPJ4The given question is incomplete, the complete question isSorin incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January.Sales (3,400 units) = $88,400Variable expenses = $43,316_________Contribution margin = $45,084Fixed expenses = $33,400_________Net operating income = $11,684If the company sells 3,800 units, its total contribution margin should be closest to,(a) $50388(b) $45084(c) $70400(d) $13059...