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What is the total contribution if a company sells 300 units with a contribution

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Question: What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?

Options:

  1. $12,000
  2. $10,000
  3. $15,000
  4. $8,000

Correct Answer: $12,000

Solution: 

Total contribution = Contribution margin per unit * Number of units = $40 * 300 = $12,000.

What is the total contribution if a company sells 300 units with a contribution

Practice Questions

Q1
What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?
  1. $12,000
  2. $10,000
  3. $15,000
  4. $8,000

Questions & Step-by-Step Solutions

What is the total contribution if a company sells 300 units with a contribution margin of $40 per unit?
  • Step 1: Identify the contribution margin per unit, which is given as $40.
  • Step 2: Identify the number of units sold, which is given as 300.
  • Step 3: Multiply the contribution margin per unit by the number of units sold: $40 * 300.
  • Step 4: Calculate the result of the multiplication, which is $12,000.
  • Step 5: The total contribution is $12,000.
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