Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

urgent please A company sold 112,000 units last year for $7.00 each. Variable costs per unit were $1.40 for direct materiais, $2.45 for direct labor,

urgent please
image text in transcribed
A company sold 112,000 units last year for $7.00 each. Variable costs per unit were $1.40 for direct materiais, $2.45 for direct labor, and $0.35 for variable overhead. Fixed costs were $38,000 in manufacturing overhead and $16,000 in nonmanufacturing costs. Required: a. What is the total contribution margin? 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 to 2 decimal places. d. If sales increase by 24,000 units, by how much will profits increase? Note: Round your intermediate calculations to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Routledge Handbook Of Environmental Accounting

Authors: Jan Bebbington, Carlos Larrinaga, Brendan O'Dwyer, Ian Thomson

1st Edition

0367724901, 9780367724900

More Books

Students also viewed these Accounting questions