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    Goria Corporation: Total Contribution Margin

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    Goria 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 $133.60 per unit.

    Sales volume(units) 4,000 5,000
    Cost of sales $383,600 $479,500
    Selling of administrative costs $124,000 $136,000

    The best estimate of the total contribution margin when 4,300 units are sold is:

    A) $112,230
    B) $162,110
    C) $28,380
    D) $45,150

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    Solution Preview

    First we calculate the percentage of contribution margin for the two sales levels given in the ...

    Solution Summary

    The solution shows all the calculations for two expected levels of unit sales in explanation of the answer, which is given.