ladanza 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 $195.70 per unit. Sales Volume Cost of Sales 6,000 $457,800 7,000 $534,100 Selling & Administrative costs $621,000 $639,100 The best estimate of the total contribution margin when 6,300 units are sold is: A. $752,220 B. $638,190 C. $100,170 D. $177,030
ladanza 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 $195.70 per unit. Sales Volume Cost of Sales 6,000 $457,800 7,000 $534,100 Selling & Administrative costs $621,000 $639,100 The best estimate of the total contribution margin when 6,300 units are sold is: A. $752,220 B. $638,190 C. $100,170 D. $177,030
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text:ladanza 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
$195.70 per unit.
Sales Volume
Cost of Sales
6,000
$457,800
7,000
$534,100
Selling & Administrative costs $621,000 $639,100
The best estimate of the total contribution margin when 6,300 units are sold is:
A. $752,220
B. $638,190
C. $100,170
D. $177,030
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