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Author Question: Orion Company sells several products. Information of average revenue and costs is as follows: ... (Read 207 times)

ts19998

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Orion Company sells several products. Information of average revenue and costs is as follows:

Selling price per unit$23
 Variable costs per unit:
Direct material$4
Direct manufacturing labor$1.70
Manufacturing overhead$0.40
Selling costs$2
Annual fixed costs$100,000
The company sells 12,000 units at the end of the year.

If direct labor and direct material costs increase by $1 each, contribution margin ________.
◦ increases by $24,000
◦ increases by $12,000
◦ decreases by $24,000
◦ decreases by $12,000


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Marked as best answer by ts19998 on Mar 6, 2021

fur

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ts19998

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


xthemafja

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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