Schister Systems uses the following data in its Cost-Volume-Profit analyses:     Total Sales $ 325,000 Variable expenses 195,000 Contribution margin 130,000 Fixed expenses 105,000 Net operating income $ 25,000   What is total contribution margin

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Schister Systems uses the following data in its Cost-Volume-Profit analyses:

 

  Total
Sales $ 325,000
Variable expenses 195,000
Contribution margin 130,000
Fixed expenses 105,000
Net operating income $ 25,000

 

What is total contribution margin if sales volume increases by 30%?

 

Multiple Choice
  •  
    $17,500
  •  
    $130,000
  •  
    $32,500
  •  
    $169,000
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