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Callis Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The
Callis 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 $141.60 per unit.
Sales volume (units) | 5,000 | 6,000 |
Cost of sales | $265,500 | $318,600 |
Selling and Administrative costs. | $393,500 | $406,800 |
The best estimate of the total contribution margin when 5,300 units are sold is:
$51,940
$469,050
$109,710
$398,560
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