Answer:
Total contribution margin = $184,600
Explanation:
Contribution is the value of sales less variable cost of sales
Contribution margin= Sales revenue =- variable cost of sales
= $355,000- 213,000
=$142000
If sals increase by 30%, total contribution will also increase by the same percentage because the variable cost is linear
Total contribution margin = 130%×142000
= $184,600
Answer:
Contribution margin 184,600
Explanation:
Given
Schister Systems
Total Sales $355,000
Variable expenses 213,000
Contribution margin 142,000
Fixed expenses 111,000
Net operating income $31,000
Calculated
Schister Systems
Total Sales $355,000 +(355,000*30%)= $355,000+106,500= $ 461,500
Variable expenses 213,000 + 63,900= 276,900
Contribution margin 184,600
If the sales are increased so will be the cost of goods sold increased therefore the new contribution margin will be $ 184,600
