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Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000

Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000
Transcribed Image Text:Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000
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