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Total Cost Sales ($50 ? units) ? Variable costs ( $35 ?units) ? Contribution margin $ ? Fixed costs $300,000 Income from operations $ 300,000
Total Cost Sales ($50 ? units) ? Variable costs ( $35 ?units) ? Contribution margin $ ? Fixed costs $300,000 Income from operations $ 300,000 Fixed costs are estimated at $300,000. The unit selling price is $50 and the unit variable cost is $35. The firm wishes to make a $300,000 profit. Find Contribution margin in dollars? Find Total Variable Cost? Select one: a. Contribution margin = $0 Total variable cost=$2,500,000 b. Contribution margin = $600,000 Total variable cost=$2,000,000 c. Contribution margin = $900,000 Total variable cost=$1,000,000 d. Contribution margin = $300,000 Total variable cost=$450,000
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