Transcribed image text: Homework: Chapter 3 Score: 0 of 1 pt 4 of 10 (0 complete) Exercise 3-13 (book/static) Patel Manufacturing sold 300,000 units of its product for $50 per unit. Variable cost per unit is $35 and total fixed costs are $1,800,000 Required 1. Calculate (a) contribution margin and (b) operating income 2. Patel's current manufacturing process is labour intensive. Kate Schoenen, Patel's production manager, has proposed investing in state will increase the annual fixed costs to $3,400,000. The variable costs are expected to decrease to $23 per unit. Patel expects to maint next year. How would acceptance of Schoenen's proposal affect your answers to (a) and (b) in requirement 1? 3. Should Patel accept Schoenen's proposal? Explain Requirement 1. Calculate (a) contribution margin and (b) operating income. (a) Determine the formula used to calculate the contribution margin, and then find the contribution margin Contribution margin Choose from any drop-down list and then click Check Answer. Clear All 7 parts remaining N o W 16 Oca Ravinder Dande & 02/01/21 11:55 PM 3 Save 4 of 10 (0 complete) HW Score: 0%, 0 of 10 pts Question Help duct for $50 per unit. Variable cost per unit is $35 and total fixed costs are $1,800,000 ating income. ur intensive. Kate Schoenen, Patel's production manager, has proposed investing in state-of-the-art manufacturing equipment which 000. The variable costs are expected to decrease to $23 per unit. Patel expects to maintain the same sales volume and selling price n's proposal affect your answers to (a) and (b) in requirement 1? xplain. 7 and (b) operating income. ontribution margin, and then find the contribution margin. Contribution margin Check