Solution-Determine the Razor Inc total contribution margin

Determine the Razor Inc total contribution margin

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Reference no: EM132853663

Question - Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,070 units of Fluoro2211 are as follows.

Per Unit Data

Selling Price $290

Direct Materials 90

Direct Labor 22

Variable Manufacturing Overhead 19

Fixed Manufacturing Overhead 37

Variable Selling 10

Fixed Selling and Administrative 17

Total Costs 195

Operating Margin $95

During the next year, sales of Fluoro2211 are expected to be 10,070 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $300. Based on these data, determine the Razor Inc.'s total contribution margin for next year?

Reference no: EM132853663

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Determine the Razor Inc total contribution margin

Reference no: EM132853663

Reference no: EM132853663

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