# Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $390,000 Variable Item11 Item 11Item 11 Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales$ 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% ### Answers the total contribution margin is$245,700

Explanation:

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

= $245,700 Hence, the total contribution margin is$245,700

the correct answer is - no.

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