What is the expected added profit from the Challenger line? Challenger Bikes Selling Price per Unit Materials Direct Labour Overhead (40% Variable) Total Per Unit Relevant Cost Estimated Additional Contribution Margin Estimated Sales Unit Estimated Increase in profit $39.80 19.6 9.8 (40%*24.50) $69.20 $92.29 $69.20 $23.09 25000 $577,250
What is the expected added profit from the Challenger line? Challenger Bikes Selling Price per Unit Materials Direct Labour Overhead (40% Variable) Total Per Unit Relevant Cost Estimated Additional Contribution Margin Estimated Sales Unit Estimated Increase in profit $39.80 19.6 9.8 (40%*24.50) $69.20 $92.29 $69.20 $23.09 25000 $577,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:What is the expected added profit from the Challenger line ?
Challenger Bikes
Selling Price per Unit
Materials
Direct Labour
Overhead (40% Variable)
Total
Per Unit Relevant Cost
Estimated Additional
Contribution Margin
Estimated Sales Unit
Estimated Increase in profit
$39.80
19.6
9.8 (40%*24.50)
$69.20
$92.29
$69.20
$23.09
25000
$577,250
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