Answer:
Total contribution margin= $125,000
Explanation:
Giving the following information:
A firm expects to sell 25,000 units of its product at $11 per unit and to incur variable costs per unit of $6.
To calculate the total contribution margin, we need to use the following formula:
Total contribution margin= units sold*unitary contribuiton margin
Total contribution margin= 25,000*(11-6)
Total contribution margin= $125,000
