Question 1

Redford, Inc. has provided the following data:

Sales Price		$200.00	per unit
Sales		6,000	Units
Fixed Cost		$300,000
Variable cost		$100.00	per unit

If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net income will how much?

Question 2

Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per unit based on the current level of activity, and fixed selling and administrative costs are $16 per unit.

The contribution margin per unit is how much?

Question 3

Within the relevant range, the variable cost per unit: