A merchandiser plans to sell 12,100 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense Cost Formula $60 per unit sold $150,000 per month. $70,000 per month $100,000 per month + $10 per unit sold $50,000 per month. 5% of sales $15,000 per month What is the estimated total contribution margin for next month?

A merchandiser plans to sell 12,100 units next month at a selling price of $110 per unit. It also gathered the following cost estimates for next month: Cost Cost of goods sold Advertising expense Depreciation expense Shipping expense Administrative salaries Sales commissions Insurance expense Cost Formula $60 per unit sold $150,000 per month. $70,000 per month $100,000 per month + $10 per unit sold $50,000 per month. 5% of sales $15,000 per month What is the estimated total contribution margin for next month?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 1PROB

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