Ladanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit.
Sales volume (units) 6000 7000
Cost of sales $457800 $534100
Selling and administrative costs $621000 $639100
The best estimate of the total contribution margin when 6,300 units are sold is:
a $752,220
b $638,190
c $100,170
d $177,030