otaled $96,670 (13,810 units at $7 each), the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If variable cost of goods sold totaled $66,480 for the year (16,620 units at $4 each) and the planned variable cost of goods sold totaled $96,670 (13,810 units at $7 each), the
effect of the unit cost factor on the change in contribution margin is:
O a. $11,240 decrease
Ob. $11,240 increase
c.
$49,860 decrease
Od. $49,860 increase
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