Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Andromeda. Inc. sold 11,000 unit, last year for $20 each Variable costs per unit were $2 for direct materials. $1.50 for direct labor, and $2.50
Andromeda. Inc. sold 11,000 unit, last year for $20 each Variable costs per unit were $2 for direct materials. $1.50 for direct labor, and $2.50 for variable overhead. Fixed costs were $60, 000 in manufacturing overhead and $40.000 in nonmanufacturing cost. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 2,000 units, by how much will profits increase? 12. Southern Cross sells a product for $50 per unit. Variable costs per unit arc $30. and monthly fixed costs are $150, 000. a. What is the break-even point in units? b. What sales amount in dollars would be required to earn a target profit of $100, 000? Assume they achieve the level of sales required in . what is the margin of safety in units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started