Question

Davis Inc. expects to sell 35,000 units during the next quarter at a selling price of...

Davis Inc. expects to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also provided the following cost estimates for the next quarter:

Cost Cost Formula
Cost of good sold $26 per unit sold
Advertising expense $183,000 per quarter
Sales commissions 6% of sales
Shipping expense $57,000 per quarter + $4.00 per unit sold
Administrative salaries $93,000 per quarter
Insurance expense $10,300 per quarter
Depreciation expense $63,000 per quarter

How much is the company's total contribution margin for the quarter?

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