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Question 4 Calculation of Contribution Margin Korara Company provides the following information for the period. Sales $ 6 8 7 , 5 0 0 Variable

Question 4 Calculation of Contribution Margin
Korara Company provides the following information for the period.
Sales
$687,500
Variable Cost Direct Materials
151,250
Variable Cost Direct Labour
302,500
Variable Cost Selling and Administration Expenses
13,750
Fixed Factory Overhead
125,000
Fixed Administration Costs
45,000
Units Sold
55,000
Required:
a)
What is the expected profit from the sale of 55,000 units and at 65,000 units?
b)
What is the contribution margin per unit and contribution ratio (expressed as a %)?

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