A company reports the following per unit cost information for this year: Direct materials, $3.90, Direct labor, $5.30, Variable overhead costs, $2.50, Variable selling and administrative costs, $2.90. Fixed costs are $67,000 per year. The company sold 6,700 units for $32 per unit For next year, the company will use a new material, which will reduce direct materials cost to $3.60 per unit. The company will also ncrease its selling price to $38 per unit, which will decrease unit sales volume to 6,200 units. Fixed costs per year, direct labor cost er unit, variable overhead costs per unit, and variable selling and administrative expenses per unit will not change. Complete this question by entering your answers in the tabs below. equired 1 Required 2 mpute the contribution margin per unit when using the new material, increasing the selling price, and decreasing unit sales. e: Round "per unit answers to 2 decimal places. bution margin per unit orice per unit costs per unit materials With new material and i increased selling price

A company reports the following per unit cost information for this year: Direct materials, $3.90, Direct labor, $5.30, Variable overhead costs, $2.50, Variable selling and administrative costs, $2.90. Fixed costs are $67,000 per year. The company sold 6,700 units for $32 per unit For next year, the company will use a new material, which will reduce direct materials cost to $3.60 per unit. The company will also ncrease its selling price to $38 per unit, which will decrease unit sales volume to 6,200 units. Fixed costs per year, direct labor cost er unit, variable overhead costs per unit, and variable selling and administrative expenses per unit will not change. Complete this question by entering your answers in the tabs below. equired 1 Required 2 mpute the contribution margin per unit when using the new material, increasing the selling price, and decreasing unit sales. e: Round "per unit answers to 2 decimal places. bution margin per unit orice per unit costs per unit materials With new material and i increased selling price

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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