If the dollar contribution margin per unit is increased by 10% total fixed cost is decreased by 20% and all other factors remain the same
net income will how much?
Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit
sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per unit based on the current level of activity and fixed selling and
administrative costs are $16 per unit.
The contribution margin per unit is how much?
Within the relevant range the variable cost per unit: