Question: Contribution margin income statement Sales (8,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit $ 20.00
Contribution margin income statement Sales (8,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Income Per Unit $ 20.00 Annual Total $ 160,000 4.25 34,000 6.00 48,000 2.00 16,000 7.75 62,000 4.25 34,000 $ 3.50 $ 28,000 A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson's annual productive capacity is 12.000 units. If Markson accepts this additional business, its profits will Multiple Choice increase by $3.500 Decrease by $5.650
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
