Question
Campbell, Inc. sold 112,000 units last year for $4.00 each. Variable costs per unit were $1.20 for direct materials, $.80 for direct labor, and $.20
Campbell, Inc. sold 112,000 units last year for $4.00 each. Variable costs per unit were $1.20 for direct materials, $.80 for direct labor, and $.20 for variable overhead. Fixed costs were $31,000 in manufacturing overhead and $28,000 in nonmanufacturing costs. a. What is the total contribution margin?
b. What is the unit contribution margin? (Round your answer to 2 decimal places.)
c. What is the contribution margin ratio? (Round your intermediate calculations to 2 decimal places.)
d. If sales increase by 38,000 units, by how much will profits increase? (Round your intermediate calculations to 2 decimal places.)
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