Total Per Unit Sales Variable expenses Bear is expecting a 20-cent increase in v
ID: 2380106 • Letter: T
Question
Total
Per Unit
Sales
Variable expenses
Bear is expecting a 20-cent increase in variable expenses. No other changes are expected or planned. How much contribution margin should Bear expect after the increase?
12. Bear Publishing sells a nature guide. The following information was reported for a typical month (sales volume is constant each month):Total
Per Unit
Sales
$17,600 $16.00Variable expenses
$9,680 $8.80 Contribution margin $7,920 $7.20 Fixed expenses $3,600 Net operating income $4,320Bear is expecting a 20-cent increase in variable expenses. No other changes are expected or planned. How much contribution margin should Bear expect after the increase?
A. $7,700 B. Can't be determined C. $9,900 D. $4,100Explanation / Answer
C. $9,900