Ask Question
26 January, 03:18

Crane Company produces two models: Model 24 has sales of 300 units with a contribution margin of $40 each; Model 26 has sales of 150 units with a contribution margin of $50 each. If sales of Model 26 increase by 50 units, how much will profit change

+2
Answers (1)
  1. 26 January, 04:56
    0
    Effect on income = 50*50 = $2,500 increase

    Explanation:

    Giving the following information:

    Model 26 has sales of 150 units with a contribution margin of $50 each.

    To calculate the effect on income, we need to use the following formula:

    Effect on income = number of units*unitary contribution margin

    Effect on income = 50*50 = $2,500 increase
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Crane Company produces two models: Model 24 has sales of 300 units with a contribution margin of $40 each; Model 26 has sales of 150 units ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers