Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chilton, Inc. sold 12,900 units last year for $20 each. Variable costs per unit were $3.00 for direct materials, $1.90 for direct labor, and $3.40

image text in transcribedimage text in transcribed

Chilton, Inc. sold 12,900 units last year for $20 each. Variable costs per unit were $3.00 for direct materials, $1.90 for direct labor, and $3.40 for variable overhead. Fixed costs were $61,900 in manufacturing overhead and $42,000 in nonmanufacturing costs. a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.) Total Contribution Margin b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit Contribution Margin c. What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.) Contribution Margin Ratio d. If sales increase by 2,070 units, by how much will profits increase? (Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount.) Profits 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

Laboratory Auditing For Quality And Regulatory Compliance

Authors: Donald C. Singer, Raluca-Ioana Stefan, Jacobus F. Van Staden

1st Edition

0367392461, 978-0367392468

More Books

Students also viewed these Accounting questions