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Alene Company currently sells its only product for $95 per unit. Variable manufacturing cost per unit is $56 while fixed manufacturing overhead totals $50,000. Variable
Alene Company currently sells its only product for $95 per unit. Variable manufacturing cost per unit is $56 while fixed manufacturing overhead totals $50,000. Variable selling and administrative expenses are $15 per unit sold and fixed selling and administrative expenses total $28,000. What is the effect on contribution margin when production increases from 5,700 to 6,200 units if all units produced are sold each year?
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An increase of $19,500.
An increase of $28,000.
An increase of $47,500.
An increase of $12,000.
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