Question
Nok, Inc. sold 114,000 units last year for $5.00 each. Variable costs per unit were $1.25 for direct materials, $1.25 for direct labor, and $.25
Nok, Inc. sold 114,000 units last year for $5.00 each. Variable costs per unit were $1.25 for direct materials, $1.25 for direct labor, and $.25 for variable overhead. Fixed costs were $39,000 in manufacturing overhead and $22,000 in nonmanufacturing costs.
a. What is the total contribution margin?
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 to 2 decimal places.)
d. If sales increase by 20,000 units, by how much will profits increase?
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