The following financial data have been determined from analyzing the records of Tims Brake Co (a one product firm) Contribution margin per unit $50 Variable cost per unit 42 Annual fixed cost $180,000 How does each of the following measures change when product volume goes up by one unit at Tims Bra...

a Total revenue rises by 50 42 ...

The following financial data have been determined from analyzing the records of Tims Brake Co. (a one-product

Question:

The following financial data have been determined from analyzing the records of Tim’s Brake Co. (a one-product firm):
per unit ......... $50
Variable cost per unit ............ 42
Annual fixed cost ........... $180,000
How does each of the following measures change when product volume goes up by one unit at Tim’s Brake Co?
a. Total revenue
b. Total cost
c. Income before tax

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...