Question: orion inc sold 17000 units last year for 50 each...
Orion, Inc. sold 17,000 units last year for $50 each. Variable
costs per unit were $20 for direct materials, $15 for direct labor,
and $10 for variable overhead. Fixed costs were $10,000 in
manufacturing overhead and $50,000 in nonmanufacturing costs.
a. What is the total contribution margin?
b. What is the unit contribution margin?
c. What is the contribution margin ratio?
d. If sales increase by 5,000 units, by how much will profits increase?