Vaughn, Incorporated, sold 16,000 units last year for $120.00 each. Variable costs per unit were $24.00 for direct materials, $24.00 for direct labor, and $6.00 for variable overhead. Fixed costs were $38,000 in manufacturing overhead and $21,000 in nonmanufacturing costs. Required: What is the total contribution margin? What is the unit contribution margin? Note: Round your answer to 2 decimal places. What is the contribution margin ratio? Note: Round your intermediate calculations to 2 decimal places. elf sales increase by 3,000 units, by how much will profits increase? Note: Round your intermediate calculations to 2 decimal places. Total Contribution Margin Unit Contribution Margin Contribution Margin Ratio Profits Increaso %
Vaughn, Incorporated, sold 16,000 units last year for $120.00 each. Variable costs per unit were $24.00 for direct materials, $24.00 for direct labor, and $6.00 for variable overhead. Fixed costs were $38,000 in manufacturing overhead and $21,000 in nonmanufacturing costs. Required: What is the total contribution margin? What is the unit contribution margin? Note: Round your answer to 2 decimal places. What is the contribution margin ratio? Note: Round your intermediate calculations to 2 decimal places. elf sales increase by 3,000 units, by how much will profits increase? Note: Round your intermediate calculations to 2 decimal places. Total Contribution Margin Unit Contribution Margin Contribution Margin Ratio Profits Increaso %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vaughn, Incorporated, sold 16,000 units last year for $120.00 each. Variable costs per unit were $24.00 for direct materials, $24.00 for
direct labor, and $6.00 for variable overhead. Fixed costs were $38,000 in manufacturing overhead and $21,000 in nonmanufacturing.
costs.
Required:
What is the total contribution margin?
What is the unit contribution margin?
Note: Round your answer to 2 decimal places.
What is the contribution margin ratio?
Note: Round your intermediate calculations to 2 decimal places.
Nelf sales increase by 3,000 units, by how much will profits increase?
orNote: Round your intermediate calculations to 2 decimal places.
Total Contribution Margin
Unit Contribution Margin
Contribution Margin Ratio
Profits Increase
%
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