requirement 2. Davidson's current manufacturing process is labor-intensive. Kate Fischer, Davison's production manager, has proposed investing in state of the art manufacturing equipment, which will increase the annual fixed cost to 4,300,000. The variable costs are expected to decrease to $48 per unit. Davison expects to maintain the same sales volume and selling price next year. How would acceptance to Fischer's proposal affect your answer to (A) and (B) be in requirement one?

Recalculating (A) and (B) if the proposal is accepted.

(a) The contribution margin would be $_____ under Fischer's proposal.

Davidson Manufacturing sold 430,000 units of its product for $62 per unit in 2017 Variable cost per unit is $52, and total fixed costs are $1.720,000 Read the resuncements Requirement 1. Calculate (a) contribution margin and (b) operating income (a) Determine the formula used to calculate the contribution margin Total sales Total variable costs Contribution margin The contribution margin is $ 4,300,000 (6) Determine the formula used to calculate the operating incomo Contribution margin Total fixed costs Operating Income 2,580,000 Operating income iss Requirement 2. Davidson's current manufacturing process is labor intensive Kate Fischer Davidson's production manager has proposed investing in state-of-th The variable costs are expected to decrease to 548 per unit Davidson expects to maintain the same sales volume and selling price next year How would accepte Recalculate (a) and (b) of the proposal is accepted (a) The contribution margin would be under Fischer's proposal