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  1. business
  2. accounting
  3. a company sold 88,000 units at a price of $3.00 ea

A company sold 88,000 units at a price of $3.00 each. Unit variable costs were...

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A company sold 88,000 units at a price of $3.00 each. Unit variable costs were $.75 for direct materials, $.60 for direct labor, and $.15 for variable overhead. Fixed costs were $25,000 in manufacturing overhead and $30,000 in nonmanufacturing costs. a. What is the total contribution margin? Total Contribution Margin $ 132,000 b. What is the unit contribution margin? (Round your answer to 2 decimal places.) Unit Contribution Margin 1.50 c. What is the contribution margin ratio? (Round your intermediate calculations to 2 decimal places.) Contribution Margin Ratio 50% d. If sales increase by 28,000 units, by how much will profits increase? (Round your intermediate calculations to 2 decimal places.) Profits Increase $ 42.000

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