Campbell, Inc. sold 100,000 units last year for $2.00 each. Variable costs per unit were $

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Question description

Campbell, Inc. sold 100,000 units last year for $2.00 each. Variable costs per unit were $0.30 for direct materials, $0.50 for direct labor, and $0.30 for variable overhead. Fixed costs were $60,000 in manufacturing overhead and $40,000 in nonmanufacturing costs.

a.

What is the total contribution margin?

b.

What is the unit contribution margin? (Round your answer to 2 decimal places.)

c.

What is the contribution margin ratio?

d.

If sales increase by 20,000 units, by how much will profits increase?


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(Top Tutor) Daniel C.
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