Question
Chilton, Inc. sold 12,100 units last year for $21 each. Variable costs per unit were $3.00 for direct materials, $1.60 for direct labor, and $3.20
Chilton, Inc. sold 12,100 units last year for $21 each. Variable costs per unit were $3.00 for direct materials, $1.60 for direct labor, and $3.20 for variable overhead. Fixed costs were $61,500 in manufacturing overhead and $40,600 in nonmanufacturing costs.
a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.)
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 and final answer to 2 decimal places.)
d. If sales increase by 2,060 units, by how much will profits increase? (Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount.)
Step by Step Solution
3.49 Rating (162 Votes )
There are 3 Steps involved in it
Step: 1
Solution Quiz a Total Contribution SalesSelling Price Variable Cost 1210021 ...Get Instant Access to Expert-Tailored 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 StartedRecommended Textbook for
Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App