The total sales and cost information is based on the sale of 25,000 units. Total Sales Per Unit $625,000 Variable Costs $450,000 Fixed Costs Required: $120,000 a. Compute the total contribution margin. b. Compute the contribution margin ratio. c. Compute the unit contribution margin for this company. d. Compute the increase in net income that will result from a $40,000 increase in sales.

The total sales and cost information is based on the sale of 25,000 units. Total Sales Per Unit $625,000 Variable Costs $450,000 Fixed Costs Required: $120,000 a. Compute the total contribution margin. b. Compute the contribution margin ratio. c. Compute the unit contribution margin for this company. d. Compute the increase in net income that will result from a $40,000 increase in sales.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the...

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