Bon Jovi Company sells motorcycles. Each motorcycle sells for $10,000 and has total variable costs per unit of $6,000. Bon Jovi's fixed costs per unit are $1.000 at an annual sales volume of 5,000 units. What is Bon Jovi's contribution margin percentage and what will be the increase in Bon Jovi's operating income if it increases its sales by 1,000 units?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bon Jovi Company sells motorcycles. Each motorcycle sells for $10,000 and has total variable costs per unit of $6,000. Bon Jovi's fixed
costs per unit are $1.000 at an annual sales volume of 5,000 units. What is Bon Jovi's contribution margin percentage and what will be the
increase in Bon Jovi's operating income if it increases its sales by 1,000 units?
Transcribed Image Text:Bon Jovi Company sells motorcycles. Each motorcycle sells for $10,000 and has total variable costs per unit of $6,000. Bon Jovi's fixed costs per unit are $1.000 at an annual sales volume of 5,000 units. What is Bon Jovi's contribution margin percentage and what will be the increase in Bon Jovi's operating income if it increases its sales by 1,000 units?
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