Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 390,000 Variable expenses 214,500 Contribution margin 175,500 Fixed expenses 118,000 Net operating income $ 57,500 What is total contribution margin if sales volume increases by 40%
the total contribution margin is $245,700
The computation of the total contribution margin in the case when the sales volume rise by 40% is shown below:
Since the sales volume is rise so the contribution margin is also rise by 40%
Therefore the total contribution margin would be
= Contribution margin × (1 + increased percentage)
= $175,500 × (1 + 0.40)
= $175,500 × 1.40
Hence, the total contribution margin is $245,700
the correct answer is - no.
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