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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.  Sales volume (units) 6,0007,000Cost of sales $457,800$534,100Selling and administrative costs $621,000$639,100\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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