Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Campbell, Inc. sold 108,000 units last year for $4.00 each Variable costs per unit were $140 for direct materials, 5.80 for direct labor and $.20

image text in transcribed
Campbell, Inc. sold 108,000 units last year for $4.00 each Variable costs per unit were $140 for direct materials, 5.80 for direct labor and $.20 for variable overhead. Fixed costs were $19,000 in manufacturing overhead and 315.000 in nonmanufacturing costs a. What is the total contribution margin? $ 108,000 Total Contribution Margin b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit contribution Margin What is the contribution margin ratio? (Round your intermediate calculations to 2 decimal places! Contribution Margin Radio d. If sales increase by 38,000 units by how much will profits increase?(Round your intermediate calculations to 2 decimal places) Pro 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

Audit Planning A Risk Based Approach

Authors: K. H. Spencer Pickett

1st Edition

047169052X, 978-0471690528

More Books

Students also viewed these Accounting questions