Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (3,800 units) $ 95,000 Variable expenses 38,000 Contribution margin 57,000 Fixed expenses 43,600 Net operating income $ 13,400 If the company sells 3,900 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Garrison 16e Rechecks 2018-06-19 Multiple Choice $57,000 $59,500 $13,753 $58,500

$59,850

Explanation:

The computation of total contribution margin is shown below:-

Sales = (3,800 units) $95,000

Variable expenses = $38,000

Contribution margin = Sales - Variable expenses

= $95,000 - $38,000

= $57,000

Contribution margin ratio = Contribution margin ÷ Sales

= $57,000 ÷ $95,000

= 0.6

= 60%

Contribution for 3,900 units = (Sales × Contribution units ÷ Sales units) × Contribution margin ratio

= ($95,000 × 3,900 ÷ 3,800) × 60%

= $95,000 × 1.02 × 60%

= $59,850

3rd the reason why is because of management and leadership