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A company sold 12,400 units last year for $21 each. Variable costs per unit were $3.00 for direct materials, $2.00 for direct labor, and
A company sold 12,400 units last year for $21 each. Variable costs per unit were $3.00 for direct materials, $2.00 for direct labor, and $4.50 for variable overhead. Fixed costs were $60,100 in manufacturing overhead and $40,600 in nonmanufacturing costs. Required: a. What is the total contribution margin? Note: Round your intermediate calculations to 2 decimal places. b. What is the unit contribution margin? Note: Round your answer to 2 decimal places. c. What is the contribution margin ratio? Note: Round your intermediate calculations and final answer to 2 decimal places. d. If sales increase by 2,050 units, by how much will profits increase? Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount. a. Total Contribution Margin b. Unit Contribution Margin c. Contribution Margin Ratio: d. Profits Increase %
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