Reference no: EM132581078
Davis Inc. expects to sell 23,000 units during the next quarter at a selling price of $51 per unit. The company also provided the following cost estimates for the next quarter:
Cost Cost Formula
Cost of good sold $21 per unit sold
Advertising expense $171,000 per quarter
Sales commissions 6% of sales
Shipping expense $42,000 per quarter + $7.00 per unit sold
Administrative salaries $81,000 per quarter
Insurance expense $9,100 per quarter
Depreciation expense $51,000 per quarter
Question 1: How much is the company's total contribution margin for the quarter?