Question

Christensen Corporation Christensen Corporation is a wholesaler that sells a single product Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $173.00 per unit. L n Sales Volume 4,010 T 05,010 No Cost of Sales - $307,56714000 $384.267 / su Selling & Administrative Costs $317,993 4010 1) What is the total contribution margin when 4,350 units are sold? & dift , 384,267 5010 $337,173/2010-pe'unit # unita P87.74 high-low unit t = units x eu - high : 384,267 +337, 173= 721,440 low=307, 567 +3 17,993 = 625,560 721,440- 625,560 - 95,880 = 95.88 3010-4010 1000 total mc = a + bx Y = a + bx * 721,440= 693,730 8l66, 730 - 307,567 386, 163 - 317, 163 69,000 145,290 482 463

Answer 1

Solution:-

Note:- As per HOMEWORKLIB RULES if more than one question is posted than we liable to answer only first question:-

1) What is the total contribution margin when 4,350 units are sold:-

High/Low Method to find variable portion:

((384,267+337,173) -(307,567+317,993))/(5,010-4,010)= 95.88

721,440 = a + 5,010*95.88

a=241,081.20

Y=241,081.20 + 95.88X

Sales (4,350 * 173)	752,550
- Variable cost (4,350 * 95.88)	417,078
Contribution margin	335,472

Note:- As per HOMEWORKLIB RULES if more than one question is posted than we liable to answer only first question:-

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