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Vaughn, Inc. sold 12,000 units last year for $40.00 each. Variable costs per unit were $8.00 for direct materials, $8.00 for direct labor, and
Vaughn, Inc. sold 12,000 units last year for $40.00 each. Variable costs per unit were $8.00 for direct materials, $8.00 for direct labor, and $2.00 for variable overhead. Fixed costs were $34,000 in manufacturing overhead and $21,000 in nonmanufacturing costs. a. What is the total contribution margin? Total Contribution Margin 11 b. What is the unit contribution margin? Unit Contribution Margin c. What is the contribution margin ratio? Contribution Margin Ratio: %
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