Math Problem Statement

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product.

Sales (5,600 units) $ 235,200 Variable expenses 112,000 Contribution margin 123,200 Fixed expenses 47,200 Net operating income $ 76,000 If the company sells 5,700 units, its total contribution margin should be closest to:

Note: Do not round intermediate calculations.

Group of answer choices

$123,200

$125,400

$127,400

$77,357

Solution

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Math Problem Analysis

Mathematical Concepts

Contribution Margin
Unit Analysis
Linear Relationships

Formulas

Contribution Margin per Unit = Total Contribution Margin / Number of Units
Total Contribution Margin = Contribution Margin per Unit * Number of Units

Theorems

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Suitable Grade Level

Undergraduate Business/Accounting