2. Callaham Corporation is a wholesaler that sells a single product

ECONOMICS

Multiple Choice

Use the following information to answer this question.

Callaham 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 $115.80 per unit.




Sales volume (units)


4,000

5,000

Cost of sales

$338,000

$422,500

Selling and administrative costs

$89,600

$106,000



The best estimate of the total contribution margin when 4,300 units are sold is

A. $134,590.

B. $64,070.

C. $43,430.

D. $38,270.

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