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Question - Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:
Selling price per unit $35
Manufacturing cost $3,700 per month plus $16.00 per unit
Administrative expense $1,850 per month plus $2.00 per unit
Sales commissions 16.00% of sales
Advertising expense $7,000 per month
If Buffo plans to produce and sell 3,500 units next month, the expected contribution margin would be:
a) $39,900
b) $105,650
c) $82,600
d) $35,900
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