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Spartan Systems reported total sales of $330,000, at a price of $20 and per unit variable expenses of $12, for the sales of their single
Spartan Systems reported total sales of $330,000, at a price of $20 and per unit variable expenses of $12, for the sales of their single product.
Total | Per Unit | |
Sales | $330,000 | $20 |
Variable expenses | 198,000 | 12 |
Contribution margin | 132,000 | $8 |
Fixed expenses | 106,000 | |
Net operating income | $26,000 |
What is the amount of contribution margin if sales volume increases by 40%?
$132,000
$36,400
$184,800
$15,600
Please Explain
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