Orion Company sells several products. Information of average revenue and costs is as follows: Selling...
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Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $25.00 Variable costs per unit: Direct material $6.00 Direct manufacturing labor $1.80 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $98,000 The company sells 12,000 units at the end of the year. If direct labor and direct material costs increase by $1.00 each, contribution margin O A. decreases by $24,000 OB. increases by $12,000 C. decreases by $12,000 OD. increases by $24,000
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