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Webster's Webcam Co. produce and install webcams in computers for customers. Webster has provided its contribution forma...

Webster's Webcam Co. produce and install webcams in computers for customers. Webster has provided its contribution format income statement for February.

Sales (4,900 units) $ 161,700
Variable expenses 92,169
Contribution margin 69,531
Fixed expenses 50,800
Net operating income $ 18,731

If the company sells 5,100 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

Garrison 16e Rechecks 2018-06-19

Multiple Choice

  • $80,800

  • $72,369

  • $19,496

  • $69,531

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Answer #1

Contribution margin per unit = 69,531/4900 units

= 14.19 per unit

Total Contribution margin for 5100 units

= 5100* 14.19

= 72,369

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