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coralcrab966Lv1
28 Sep 2019
[The following information applies to the questionsdisplayed below.]
Data for Herron Corporation areshown below:
Per Unit Percent
of Sales Selling price $ 110 100% Variableexpenses 77 70% Contributionmargin $ 33 30%
Fixed expenses are $82,000 per month and the company is selling3,500 units per month.
considering using higher-quality components that would increasethe variable cost by $5 per unit. The marketing manager believesthat the higher-quality product would increase sales by 20% permonth. Calculate the change in total contribution margin.
[The following information applies to the questionsdisplayed below.] |
Data for Herron Corporation areshown below: |
Per Unit | Percent of Sales | |||
Selling price | $ | 110 | 100% | |
Variableexpenses | 77 | 70% | ||
Contributionmargin | $ | 33 | 30% | |
Fixed expenses are $82,000 per month and the company is selling3,500 units per month.
|
Casey DurganLv2
28 Sep 2019