Thank you. Chilton, Inc. sold 11,100 units last year for $20 each. Variable cost

Question

Thank you.

Chilton, Inc. sold 11,100 units last year for $20 each. Variable costs per unit were $2.00 for direct materials, $3.20 for direct labor, and $3.70 for variable overhead. Fixed costs were $61,800 in manufacturing overhead and $40,700 in nonmanufacturing costs. a. What is the total contribution margin? (Round your intermediate calculations to 2 decimal places.) Total Contribution Margin En. :::Lis:1a: ???¡¡XMiki :,??? :n1 11id3jhG (Round your answer to 2 decimal places.) Unit Contribution Margin What is the contribution margin ratio? (Round your intermediate calculations and final answer to 2 decimal places.) c. Contribution Margin Ratio d- lf sales increase by 2.130 units, by how much will profits increase? (Round your intermediate calculation to 2 decimal places and final answer to the nearest dollar amount.) Profits Increase

Explanation / Answer

a Total contribution margin = 11100*(20-2-3.2-3.7)= $123210 b Unit contribution margin = 20-2-3.2-3.7= $11.1 c Contribution margin ratio = 11.1/20= 55.5% d Profits increase = 2130*11.1= $23643

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