Question - 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 expenses249,600 16
Contribution margin140,400 $9
Fixed expenses109,000
Net operating income$31,400
What is the amount of contribution margin if sales volume increases by 40%?
$40,600
$196,560
$17,400
$138,000