Campbell, Inc. sold 110,000 units last year for $7.00 each. Variable costs per unit were $1.40...
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Campbell, Inc. sold 110,000 units last year for $7.00 each. Variable costs per unit were $1.40 for direct materials, $2.45 for direct labor, and $.35 for variable overhead. Fixed costs were $30,000 in manufacturing overhead and $17,000 in nonmanufacturing costs. a. What is the total contribution margin? Total Contribution Margin b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit Contribution Margin c. What is the contribution margin ratio? (Round your intermediate calculations to 2 decimal places.) Contribution Margin Ratio % d. If sales increase by 38,000 units, by how much will profits increase? (Round your intermediate calculations to 2 decimal places.) Profits Increase Campbell, Inc. sold 110,000 units last year for $7.00 each. Variable costs per unit were $1.40 for direct materials, $2.45 for direct labor, and $.35 for variable overhead. Fixed costs were $30,000 in manufacturing overhead and $17,000 in nonmanufacturing costs. a. What is the total contribution margin? Total Contribution Margin b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit Contribution Margin c. What is the contribution margin ratio? (Round your intermediate calculations to 2 decimal places.) Contribution Margin Ratio % d. If sales increase by 38,000 units, by how much will profits increase? (Round your intermediate calculations to 2 decimal places.) Profits Increase
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Requirements asked A Selling price 700 per unit B Variable ... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
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