required information\nuse the following information for the quick study below. (algo)\ndsouza company sold…

required information\nuse the following information for the quick study below. (algo)\ndsouza company sold 9,000 units of its product for $82.00 per unit. cost of goods sold is $55.20 per unit. each unit had\n$50.40 in variable cost of goods sold and variable selling and administrative expenses are $10.20 per unit.\nqs 19 - 15 (algo) computing contribution margin lo p2\ncompute contribution margin for this company.\ndsouza company\ncontribution margin\nunits\n$ per unit\ntotal\nvariable expenses\ntotal variable expenses

required information\nuse the following information for the quick study below. (algo)\ndsouza company sold 9,000 units of its product for $82.00 per unit. cost of goods sold is $55.20 per unit. each unit had\n$50.40 in variable cost of goods sold and variable selling and administrative expenses are $10.20 per unit.\nqs 19 - 15 (algo) computing contribution margin lo p2\ncompute contribution margin for this company.\ndsouza company\ncontribution margin\nunits\n$ per unit\ntotal\nvariable expenses\ntotal variable expenses

Answer

Explanation:

Step1: Calculate variable cost per unit

Variable cost per unit = Variable cost of goods sold per unit + Variable selling and administrative expenses per unit Variable cost per unit = (50.40 + 10.20=$60.60)

Step2: Calculate contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit = (82 - 60.60=$21.40)

Step3: Calculate total contribution margin

Total contribution margin = Contribution margin per unit × Number of units sold Total contribution margin = (21.40\times9000=$192600)

Answer:

The total contribution margin is ($192600)