Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: Selling price
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Question:
Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:
Selling price per unit$35
Manufacturing cost$4,000 per month plus $17 per unit
Administrative expense$2,500 per month plus $2.50 per unit
Sales commissions15% of sales
Advertising expense$2,000 per month
If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be:
Choices:
$46,500
$30,750
$74,250
$26,750
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