Chilton, Inc. sold 12,100 units last year for $21 each. Variable costs per unit were $3.00 for
Question:
Chilton, Inc. sold 12,100 units last year for $21 each. Variable costs per unit were $3.00 for direct materials, $1.60 for direct labor, and $3.20 for variable overhead. Fixed costs were $61,500 in manufacturing overhead and $40,600 in nonmanufacturing costs.
a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.)
b. What is the unit contribution margin? (Round your answer to 2 decimal places.)
c. What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.)
d. If sales increase by 2,060 units, by how much will profits increase? (Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount.)
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott