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D 2)  Contribution Margin            The following information is supplied about one of the company’s main products and management wants to analyse the contribution that this product is making to the overall profitability of the company. (d) If the company wishes to increase its total dollar contribution margin by 40% in the next year, by how much will sales need to be increased if all the other costs remain the same.

D 2)  Contribution Margin            The following information is supplied about one of the company’s main products and management wants to analyse the contribution that this product is making to the overall profitability of the company. (d) If the company wishes to increase its total dollar contribution margin by 40% in the next year, by how much will sales need to be increased if all the other costs remain the same.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 6BE: Cost of goods sold Pine Creek Company completed 200,000 units during the year at a cost of...
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D 2)  Contribution Margin

 

         The following information is supplied about one of the company’s main products and management wants to analyse the contribution that this product is making to the overall profitability of the company.

(d) If the company wishes to increase its total dollar contribution margin by 40% in the next year, by how much will sales need to be increased if all the other costs remain the same.     

2,500 units Sales for the previous Year Selling Price $ 50 per unit $ 10 per unit $ 24,000| Variable Costs Fixed Costs
Transcribed Image Text:2,500 units Sales for the previous Year Selling Price $ 50 per unit $ 10 per unit $ 24,000| Variable Costs Fixed Costs
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