Step-wise answer to Contribution Margin
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Har Company sold 5,000 units for a prie of $50 per unit and had the following information:
Variable expenses - $160,000
Fixed expenses - $125,000
Break-even point $347,222
If the sales price per unit were to increase by 10%, variable expenses were to increase by 12.5% and fixed expenses were to increase by 20%, what would be the new contribution margin?
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Solution Summary
This solution explains how to calculate the new contribution margin given the changes.
Solution Preview
The new sales price is 50X1.1 = $55 (increase of 10%)
New sales are ...
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