Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Chilton, Inc. sold 11,200 units last year for $20 each. Variable costs per unit were $4.00 for direct materials, $2.00 for direct labor, and

image text in transcribed

3. Chilton, Inc. sold 11,200 units last year for $20 each. Variable costs per unit were $4.00 for direct materials, $2.00 for direct labor, and $2.60 for variable overhead. Fixed costs were $61,400 in manufacturing overhead and $41,200 in nonmanufacturing costs a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.) Total Contribution Margin b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit Contribution Margin c. What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.) Contribution Margin Ratio d. If sales increase by 2,120 units, by how much will profits increase? (Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount.) Profits Increase

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions