Vertex Manufacturing reported total sales of $420,000, at a price of $30 per unit, and per-unit variable expenses of $18. Description Total Per Unit Sales $420,000 $30 Variable expenses $252,000 $18 Contribution margin $168,000 $12 Fixed expenses $110,000 Net operating income $58,000 What is the amount of contribution margin if sales volume increases by 35%?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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Vertex Manufacturing reported total sales of $420,000, at a price of $30
per unit, and per-unit variable expenses of $18.
Description
Total
Per Unit
Sales
$420,000 $30
Variable expenses
$252,000 $18
Contribution margin
$168,000 $12
Fixed expenses
$110,000
Net operating income $58,000
What is the amount of contribution margin if sales volume increases by
35%?
Transcribed Image Text:Vertex Manufacturing reported total sales of $420,000, at a price of $30 per unit, and per-unit variable expenses of $18. Description Total Per Unit Sales $420,000 $30 Variable expenses $252,000 $18 Contribution margin $168,000 $12 Fixed expenses $110,000 Net operating income $58,000 What is the amount of contribution margin if sales volume increases by 35%?
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