boersma sales, incorporated, a merchandising company, reported sales of 7,100 units in september at a selling price of $682 per unit. cost of goods sold, which is a variable cost, was $317 per unit. variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit. the total fixed selling expenses were $157,200 and the total administrative expenses were $338,000.

the contribution margin for september was:

multiple choice

$2,591,500

$3,871,400

$2,122,900

$1,627,700

Question

boersma sales, incorporated, a merchandising company, reported sales of 7,100 units in september at a selling price of $682 per unit. cost of goods sold, which is a variable cost, was $317 per unit. variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit. the total fixed selling expenses were $157,200 and the total administrative expenses were $338,000.

the contribution margin for september was:

multiple choice

$2,591,500

$3,871,400

$2,122,900

$1,627,700

the contribution margin for september was:

multiple choice

$2,591,500

$3,871,400

$2,122,900

$1,627,700

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Contribution Format Income Statement", "Contribution Margin Per Unit" ], "new_concepts": [], "current_concepts": [ "Contribution Format Income Statement", "Contribution Margin Per Unit", "Variable Cost Behavior" ] } ## Calculate unit contribution margin $$ \begin{aligned} \text{Selling Price per Unit} &= \$682 \ \text{Variable Cost of Goods Sold per Unit} &= \$317 \ \text{Variable Selling Expense per Unit} &= \$44 \ \text{Variable Administrative Expense per Unit} &= \$22 \ \text{Contribution Margin per Unit} &= \$682 - (\$317 + \$44 + \$22) \ &= \$682 - \$383 \ &= \$299 \end{aligned} $$ ## Calculate total contribution margin $$ \begin{aligned} \text{Sales Volume} &= 7,100 \text{ units} \ \text{Total Contribution Margin} &= 7,100 \times \$299 \ &= \$2,122,900 \end{aligned} $$

(A) $2,591,500

(B) $3,878,400

(C) $2,122,900

(D) $1,627,700

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Accounting", "Contribution Margin" ] }

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Calculate unit contribution margin

Calculate total contribution margin

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