Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chilton, Incorporated, sold 1 1 , 0 0 0 units last year for $ 2 0 each. Variable costs per unit were $ 4 for

Chilton, Incorporated, sold 11,000 units last year for $20 each. Variable costs per unit were $4 for direct materials, $1.50 for direct labor, and $2.50 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs.
Required:
a. What is the total contribution margin?
b. What is the unit contribution margin?
c. What is the contribution margin ratio?
d. If sales increase by 2,000 units, by how much will profits increase?
\table[[a. Total Contribution Margin,,],[b. Unit Contribution Margin,,],[c. Contribution Margin Ratio,,%
image text in transcribed

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

College Accounting Chapters 1-12 With Study Guide And Working Papers

Authors: Jeffrey Slater

13th Edition

0133866300, 9780133866308

More Books

Students also viewed these Accounting questions

Question

3. How old are they? (children, teens, adults, seniors)

Answered: 1 week ago

Question

4. Where do they live? (city or town, state, country)

Answered: 1 week ago