Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.
Sales (3,700 units) $ 92,500
Variable expenses 55,500
Contribution margin 37,000
Fixed expenses 27,000
Net operating income $ 10,000
If the company sells 4,300 units, its total contribution margin should be closest to:
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Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:
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Sorin Inc., a company that produces and sells a single product, has provided its contribution format...
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