SOLUTION: The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and
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Question 1136779: The following information is available from the accounting records of Eva Corporation. Fixed costs per period are $4800. Sales volume for the last period was $19,360, and variable costs were $13,552. Capacity per period is a sales volume of $32,000.
(i)what is the total contribution margin
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the total contribution margin is the the total sales price minus the total variable cost.
that would make it 19360 - 13552 = 5808.
the total contribution margin rate is (the total sales price minus the total variable cost) divided by the total sales price.
that would make it 5808 / 19360 = .3 = 30%.
at capacity, the total sale price would be 32000.
at 30% total contribution margin rate, the total contribution margin would be .3 * 32000 = 9600.
here's some references on total contribution margin.
https://www.accountingtools.com/articles/2017/5/16/contribution-margin
https://xplaind.com/325438/contribution-margin
https://www.thebalancesmb.com/what-is-the-contribution-margin-393476
there are plenty more references.
just do a search for total contribution margin and they'll pop up.
here's an edample of the search that i did using google.
https://www.google.com/search?q=total+contribution+margin&rlz=1C1CHBF_enUS839US839&oq=total+contribution+margin&aqs=chrome.0.69i59j0l5.10335j1j4&sourceid=chrome&ie=UTF-8
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