MIKAS, Inc. sells and installs furnaces for P3,000 per furnace. The following cost formula relates to last year's operations at MIKAS: Y = P125,000 + P1,800X If MIKAS sold and installed 500 furnaces last year, what was its total contribution margin last year? 600,000 475,000 900,000 1,025,000

MIKAS, Inc. sells and installs furnaces for P3,000 per furnace. The following cost formula relates to last year's operations at MIKAS: Y = P125,000 + P1,800X If MIKAS sold and installed 500 furnaces last year, what was its total contribution margin last year? 600,000 475,000 900,000 1,025,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

MIKAS, Inc. sells and installs furnaces for P3,000 per furnace. The following cost formula relates to last year's operations at MIKAS:

Y = P125,000 + P1,800X

If MIKAS sold and installed 500 furnaces last year, what was its total contribution margin last year?

600,000

475,000

900,000

1,025,000

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