Answer:
Total contribution margin= $55,200
Explanation:
Giving the following information:
A company’s flexible budget for 14,000 units of production showed sales, $47,600; variable costs, $15,400.
The contribution margin is calculated using the following formula:
Contribution margin per unit= selling price - unitary variable cost
First, we need to calculate the selling price and unitary variable cost:
Selling price= 47,600/14,000= $3.4
Unitary variable cost= 15,400/14,000= $1.1
For 24,000 units:
Total contribution margin= 24,000*(3.4 - 1.1)= $55,200
