Calculate total contribution margin

Reference no: EM1361075

Baker Company has a product that sells for $20 per unit. The variable expenses are $12 per unit, and fixed expenses total $30,000 per year.

Required:

a. What is the total contribution margin at the break-even point?

b. What is the contribution margin ratio for the product?

c. If total sales increase by $20,000 and fixed expenses remain unchanged, by how much would net operating income be expected to increase?

d. The marketing manager wants to increase advertising by $6,000 per year. How many additional units would have to be sold to increase overall net operating income by $2,000?

Reference no: EM1361075

Questions Cloud

Discuss soutwest delta airlines merger : Discuss Soutwest Delta airlines merger and describe the competitive environment within the industry. Is there a dominant firm.

Why did you select these predictive tools : Selection Process: Predictive Tools - Why did you select these predictive tools? Explain your answer with examples.

Show the altitude of the plane : if the airplane somehow continues to fly as if nothing happend, where is the engine relative to airplane at the moment the engine hits the ground.

How are you seeing the effects of that change today : What do you think was the most crucial change and how are you seeing the effects of that change today?

Calculate total contribution margin : Baker Corporation has a product that sells for $20 per unit. The variable costs are $12 per unit, and fixed costs total $30,000 every year.

Explain how will you guide him regarding the redressal forum : explain how will you guide him regarding the redressal forums, the nature of making complaints and the working of the agency.

How strong is the electric field between the plates : How strong is the electric field between the plates.

Explain what is the theory behind the market reaction : Corporate Governance Concern in Emerging Markets - What has been the role of the market during and after the controversy and what is the theory behind the market reaction?

Explain the nonprofessional jobs at a nursing home are often : Explain The nonprofessional jobs at a nursing home are often hard and there can be a lot of employee turnover

User Account

All Pages