Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TB Problem 5-126 (Algo) Chilton, Incorporated, sold... Chilton, Incorporated, sold 11,300 units last year for $20 each. Variable costs per unit were $3.00 for
TB Problem 5-126 (Algo) Chilton, Incorporated, sold... Chilton, Incorporated, sold 11,300 units last year for $20 each. Variable costs per unit were $3.00 for direct materials, $1.60 for direct labor, and $3.80 for variable overhead. Fixed costs were $60,900 in manufacturing overhead and $41,700 In nonmanufacturing costs. Required: a. What is the total contribution margin? Note: Round your Intermediate calculations to 2 decimal places. b. What is the unit contribution margin? Note: Round your answer to 2 decimal places. c. What is the contribution margin ratio? Note: Round your Intermediate calculations and final answer to 2 decimal places. d. If sales increase by 2,170 units, by how much will profits Increase? Note: Round your Intermediate calculation to 2 decimal places and final answer to the nearest dollar amount. a. Total Contribution Margin b. Unit Contribution Margin c. Contribution Margin Ratio d. Profits Increase %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started