Belton Company currently sells its products for $25 per unit. Management is contemplating a 20% increase in the sales price for next year. Variable costs are currently 30% of sales revenue and are not expected to change next year. Fixed expenses are $150,000. If fixed costs were to decrease 10% during the current year, contribution margin would do what?

Answer rating: 100% (QA)

Selling price new 25 120 30 Variable cost 25 30 75 Contribution per unit 225 Fixed expenses per ye... View the full answer