x Ye (a) what is The Contribu × https://edugen.wileyplus.com/edugen/student/main
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x Ye (a) what is The Contribu × https://edugen.wileyplus.com/edugen/student/mainfr.uni Weygandt, Managerial Accounting, 7e actice Gradebook ORION Downloadable eTextbook nment Exercise 5-17 (Part Level Submission) Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016 Sales Sales price Variable costs Fixed costs 2,990 units $38.32 per unit $13.41 per unit 18,900 (a) Your answer is correct. What is the contribution margin ratio? (Round answer to o decimal places, e.g. 5,275.) Contribution margin ratio s ix SHOW SOLUTIONSHOW ANSWER LINK TO TEXT VIDEO: APPLIED SKILLSExplanation / Answer
d) Contribution Margin per unit = Selling price per unit - Variable cost per unit
= $38.32 - $13.41 = $24.91 per unit
Current Total contribution Margin = Units sold currently*Contribution margin per unit
= 2,990 units*$24.91 per unit = $74,480.90
Increase in total contribution margin = 30%*$74,480.90 = $22,344.27
Increase in units sold required = Increase in total contribution margin/Contribution margin per unit
= $22,344.27/$24.91 = 897 units
Increase in sales required (in $) = 897 units*$38.32 per unit = $34,373.04
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