McCauley Bagpipes produces two models: Model 24 has sales of 500 units with a co

Question

McCauley Bagpipes produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each. If sales of Model 26 increase by 200 units, how much will profit change? Answer A. $17,500 increase B. $10,000 increase C. $28,000 increase D. $27,500 increase
For Bobby Company, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars? Answer A. $300,000 B. $540,000 C. $840,000 D. $60,000 McCauley Bagpipes produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each. If sales of Model 26 increase by 200 units, how much will profit change? $17,500 increase $10,000 increase $28,000 increase $27,500 increase For Bobby Company, sales is $1,200,000 (6,000 units), fixed expenses are $360,000, and the contribution margin per unit is $80. What is the margin of safety in dollars? $300,000 $540,000 $840,000 $60,000 A. $17,500 increase B. $10,000 increase C. $28,000 increase D. $27,500 increase

Explanation / Answer

1.D.27,500 increase 2.A.$300,000

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