Iadanza Corporation Is a Wholesaler That Sells a Single Product

question 60

Multiple Choice

Iadanza 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. $\begin{array}{lrr}\text { Sales volume (units) }&6,000 & 7,000 \\\text {Cost of sales }&\$ 457,800 & \$ 534,100 \\\text {Selling and administrative costs }&\$ 621,000 & \$ 639,100\end{array}$ 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

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