Register
During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase
37,532 views
45 votes
45 votes
During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be:

User Jackson Allan
by
2.8k points

1 Answer

19 votes
19 votes

Answer:

$1,080,000

Step-by-step explanation:

Calculation to determine what Razor Inc.'s total contribution margin for next year will be:

First step is to calculate the Total cost

Selling price per unit for next year $160

Less Direct Materials ($22)

(110%*20)

Less Direct Labor ($15)

Less Variable Manufacturing Overhead ($12)

Less Variable Selling ($3)

Total $108

Now let calculate the Next year contribution margin

Next year contribution margin=$108*10,000 units

Next year contribution margin= $1,080,000

Therefore Razor Inc.'s total contribution margin for next year will be:$1,080,000

User Ancy
by
2.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Jillian Diaz receives a regular salary of $1,500 a month and is entitled to overtime pay at the rate of one and one-half times the regular hourly rate for any time worked in excess of 40 hours per week.
Link Copied!