7T-5 Vaughn, Inc. sold 30,000 units last year for $80 each. Variable costs...
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Accounting
7T-5
Vaughn, Inc. sold 30,000 units last year for $80 each. Variable costs per unit were $16 for direct materials, $24 for direct labor, and $4 for variable overhead. Fixed costs were $39,000 in manufacturing overhead and $30,000 in nonmanufacturing costs. a. What is the total contribution margin? Total Contribution Margin b. What is the unit contribution margin? Unit Contribution Margin c. What is the contribution margin ratio? Contribution Margin Ratio % d. If sales increase by 3,000 units, by how much will profits increase? Profits Increase
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