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A company sold 126,000 units last year for $3.00 each. Variable costs per unit were $1.05 for direct materials, $0.75 for direct labor, and
A company sold 126,000 units last year for $3.00 each. Variable costs per unit were $1.05 for direct materials, $0.75 for direct labor, and $0.15 for variable overhead. Fixed costs were $28,000 in manufacturing overhead and $17,000 in nonmanufacturing costs. Required: a. What is the total contribution margin? 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 to 2 decimal places. d. If sales increase by 30,000 units, by how much will profits increase? Note: Round your intermediate calculations to 2 decimal places. a. Total Contribution Margin b. Unit Contribution Margin c. Contribution Margin Ratio d. Profits Increase %
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