Expected contribution margin
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Stuart Company is a merchandising company. During the next month, the company expects to sell 450 units. The company has the following revenue and cost structure:
Selling price per unit.......... $230
Cost per unit...................... $120
Sales commission............... 12% of sales
Advertising expense.......... $18,000 per month
Administrative expense.... $32,500 per month
What is the expected contribution margin next month?
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Solution Summary
The solution explains how to calculate the expected contribution margin
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Contribution margin = Total sales - total variable cost
Total ...
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