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Chapman Products produces a unique item with the following information: Sales price $125 per unit Variable costs $50 per unit Fixed costs $70,000 Units produced
Chapman Products produces a unique item with the following information:
| Sales price | $125 per unit |
| Variable costs | $50 per unit |
| Fixed costs | $70,000 |
| Units produced and sold | 6,000 |
Required: Calculate the following based on the above information:
| A. | Net operating income |
| $ | |
| B. | Contribution margin per unit |
| $ per unit | |
| C. | Contribution margin ratio |
| % | |
| D. | If Chapman sells 500 more additional units, by what amount will net operating income increase? |
| $ | |
| E. | If Chapman has an additional $25,000 in sales, by what amount will net operating income increase? |
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