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Question: anna inc manufactures widgets and had the following data for...

Question details

Anna Inc., manufactures widgets and had the following data for 20x6:

Sales (units)

2915

Sales price per unit

$42.47

Variable costs per unit

$14.37

Fixed costs (total)

$20646


If the selling price increases by 41.41% and variable costs increase by 9.25% what is the new total contribution margin?

Select one:

a. $115831

b. $129302

c. $89488

d. $81912

Shearing Company expects the following results for the next accounting period:

Sales

$262708

Variable costs

129430

Fixed costs

35290

Expected production and sales

3111 units

The sales manager believes sales could be increased by 448 units if advertising expenditures were increased by $8729. What would be the incremental income of this proposal?

Select one:

a. $19193

b. $5382

c. $-10464

d. $10464

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