Assume that a merchandiser purchases a product from a supplier for $3.00 per unit and then sells it to customers for $5.00 per unit. Ordinarily, the company sell 30,000 units per year; however, it is considering lowering its price to $4.50 per unit. At the lower price, the company expects to sell 45,500 units per year. What total contribution margin will the company earn if it sells 45,500 units at a price of $4.50 per unit?

Multiple Choice

$68,250

$77,350

$66,400

$59,150