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Northern Star sells several products. Information of average revenue and costs is as follows: $0.40 Selling price per unit Variable costs per unit: Direct material
Northern Star sells several products. Information of average revenue and costs is as follows: $0.40 Selling price per unit Variable costs per unit: Direct material $6 Direct manufacturing labor $160 Manufacturing overhead Selling costs Annual fixed costs $100,000 The company sells 14,000 units at the end of the year. If direct labor and direct material costs increase by $2 each, contribution margin O increases by $56,000 o increases by $14,000 O decreases by $56,000 O decreases by $14,000
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