Essay
Dodge Industries incurs the following costs during the current year:
Sales for the year were $80,000 and Dodge determined that only the direct production costs and factory supplies are to be classified as variable costs; all other costs are classified as fixed costs. Dodge sold 400 units.
(a) Calculate the unit contribution margin and the contribution margin ratio for Dodge
Industries.
(b) Dodge Industries is considering plans that would increase the contribution margin ratio for next year. Should it pursue these plans? Explain.
Correct Answer:
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(a)
Variable costs per unit = $20,000/...View Answer
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Correct Answer:
Verified
Variable costs per unit = $20,000/...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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