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Ladanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The
Ladanza 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 $160.00 per unit.
Sales volume (units) | 12,700 | 14,490 |
Cost of sales | $1,054,100 | $1,202,670 |
Selling and administrative costs | $652,000 | $691,380 |
The best estimate of the total contribution margin when 13,720 units are sold is:
$369,110
$754,600
$868,630
$270,970
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