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Call Corporation is a wholesaler that sells a single product. Management has provided the following cost...

Call 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 $140.50 per unit.

Sales volume (units)..............................................

6,000

7,000

Cost of sales..........................................................

$497,400

$580,300

Selling, general, and administrative costs.............

$273,600

$294,700

        1.    The best estimate of the total monthly fixed cost is:

$147,000
$771,000
$823,000

$875,000

2. The best estimate of the total variable cost per unit is:

$104.00
$128.50
$125.00

$82.90

3. The best estimate of the total contribution margin when 6,300 units are sold is:

$362,880
$97,650
$75,600
$229,950

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Expert Solution

ekkarill92 answered 1 year ago
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