Calculation of total contribution margin


Question: Iacono Company is a wholesaler that sells a single product. Management has provided the following cost information for two (2) levels of monthly sales volume. The firm sells the product for $127.20 per unit.

The best estimate of the total contribution margin when 5,300 units are sold is:

[A] $51,410

[B] $146,810

[C] $32,330

[D] $230,020

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Cost Accounting: Calculation of total contribution margin
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