Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 17E
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Spartan Systems reported total sales of $390,000, at a price of
$25, and per unit variable expenses of $16, for the sales of
their single product.
Total
Per Unit
Sales
$390,000 $25
Variable expenses
249,600 16
Contribution margin
140,400 $9
109,000
Fixed expenses
Net operating income $31,400
What is the amount of contribution margin if sales volume
increases by 40%?
a. $40,600
b. $196,560
c. $17,400
d. $138,000
Transcribed Image Text:Spartan Systems reported total sales of $390,000, at a price of $25, and per unit variable expenses of $16, for the sales of their single product. Total Per Unit Sales $390,000 $25 Variable expenses 249,600 16 Contribution margin 140,400 $9 109,000 Fixed expenses Net operating income $31,400 What is the amount of contribution margin if sales volume increases by 40%? a. $40,600 b. $196,560 c. $17,400 d. $138,000
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