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28 October, 03:00

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 350,000 Variable expenses 210,000 Contribution margin 140,000 Fixed expenses 110,000 Net operating income $ 30,000 What is total contribution margin if sales volume increases by 20%?

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  1. 28 October, 04:22
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    What is total contribution margin = $168,000.00

    Explanation:

    The contribution margin is the excess of the sales value over the variable cost of sales.

    Contribution per unit = selling price - variable cost between

    Contribution margin (%) = contribution / sales * 100

    For Schister Systems

    Increase in sales by 20% will give sales revenue worth

    = 120% * 350,000

    = 420,000.00

    Contribution margin (%)

    = (350,000-210,000) / 350,000 * 100

    = 40%

    Total contribution = 40% * 420,000.00

    = $168,000.00

    What is total contribution margin = $168,000.00
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