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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