Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ampbell, Incorporated, sold 130,000 units last year for $3.00 each. Variable costs per unit were $.90 for direct materials, $0.60 for rect labor, and $0.15

image text in transcribed
ampbell, Incorporated, sold 130,000 units last year for $3.00 each. Variable costs per unit were $.90 for direct materials, $0.60 for rect labor, and $0.15 for variable overhead. Fixed costs were $32,000 in manufacturing overhead and $32,000 in nonmanufacturing equired: What is the total contribution margin? What is the unit contribution margin? Note: Round your onswer 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 20,000 units, by how much will profits increase? Note: Round your intermediote colculations to 2 decimal places

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

Internal Auditing Assurance And Consulting Services

Authors: Kurt F. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Contributing Writer, Cris Ridd, Richard Tuschman

1st Edition

0894136100, 978-0894136108

More Books

Students also viewed these Accounting questions