Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions

Question

What are the advantages of using telephone-based surveys?

Answered: 1 week ago

Question

8-19. What role should job descriptions play in training at Apex?

Answered: 1 week ago