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ANSWER QUESTIONS SHOW ALL CALCULATION
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Question 5:
a) The unit contributions of Stain-Away and Cavity-Away are $4.00 $3.15 $0.85 and
$3.00 $1.50 $1.50 , respectively.
For Stain-Away, we have the following calculations:
Contribution Margin (CM) =
$4.00 $3.15
$4.00
0.2125
CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price
Absolute Increase in Unit Sales =
=
$250,000
$0.85 Unit Contribution
= 294,118 units
Absolute Increase in Dollar Sales =
=
$250, 000
(CM)
0.2125
= $1,176, 471
For Cavity-...
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