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Omron sold 11,300 units of blood pressure monitors last year for $21 each. Variable costs per unit include direct materials of $3.00, direct labor of
Omron sold 11,300 units of blood pressure monitors last year for $21 each. Variable costs per unit include direct materials of $3.00, direct labor of $2.80, and variable manufacturing overhead of $3.90. Fixed costs include manufacturing overhead of $60,000 and nonmanufacturing costs of $41,400. Four requirements: a. Compute the total contribution margin. b. Compute the unit contribution margin. c. Compute the contribution margin ratio. d. If sales increase by 2,130 units, by how much will profits increase? a. Compute the total contribution margin. (Round your intermediate calculations to 2 decimal places.) Total Contribution Margin
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