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Compute the expected contribution margin

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Reference no: EM132789729

Question - Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow:

Selling price per unit $35

Manufacturing cost $4,000 per month plus $17 per unit

Administrative expense $2,500 per month plus $2.50 per unit

Sales commissions 15% of sales

Advertising expense $2,000 per month

If Buffo plans to produce and sell 3,000 units next month, compute the expected contribution margin?

a. $46,500

b. $30,750

c. $74,250

d. $26,750

Reference no: EM132789729

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