Homework Answers
a.
| Contribution margin % per unit ($92,000/$160,000) | 57.50% |
b. if sales are doubled, variable costs also will doubled to $136,000
c. Fixed cost will not have impact on change in sales. So it will same as $50,000
d.
| Profit will increase to ($160,000/8,000)*20)*57.50%) +$42,000 | $ 42,230 |
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