Davis Inc. expects to sell 29,000 units during the next quarter at a selling price of $54 per unit. The company also provided the following cost estimates for the next quarter:
Cost Cost Formula
Cost of good sold $24 per unit sold
Advertising expense $174,000 per quarter
Sales commissions 5% of sales
Shipping expense $84,000 per quarter + $4.00 per unit sold
Administrative salaries $84,000 per quarter
Insurance expense $9,400 per quarter
Depreciation expense $54,000 per quarter
How much is the company's total contribution margin for the quarter?
Multiple Choice
$675,700