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Campbell, Incorporated, sold 122,000 units last year for $7.00 each. Variable costs per unit were $2.45 for direct materials, $1.75 for direct labor, and $0.35
Campbell, Incorporated, sold 122,000 units last year for $7.00 each. Variable costs per unit were $2.45 for direct materials, $1.75 for direct labor, and $0.35 for variable overhead. Fixed costs were $23,000 in manufacturing overhead and $21,000 in nonmanufacturing costs. Required: a. What is the total contribution margin? b. What is the unit contribution margin? Note: Round your answer 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 32,000 units, by how much will profits increase? Note: Round your intermediate calculations to 2 decimal places
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