The following financial data have been deter mined from analyzing the records of Joes Ceramics (a one product firm) Contribution margin per unit $ 25 Variable cost per unit $ 21 Annual fixed cost $ 90,000 How does each of the following measures change when product volume goes up by one unit at Joes...

a When product volume goes up by one unit at Joes Ceramics there will be incre ...

The following financial data have been deter-mined from analyzing the records of Joes Ceramics (a one- product

Question:

The following financial data have been deter-mined from analyzing the records of Joe’s Ceramics (a one- product firm):
per unit ..... $ 25
Variable cost per unit ........ $ 21
Annual fixed cost .......... $ 90,000
How does each of the following measures change when product volume goes up by one unit at Joe’s Ceramics?
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...