Chapman Products produces a unique item with the following information:
$\begin{array}{ll}
\text { Sales price } & \$ 100 \text { per unit } \
\text { Variable costs } & \$ 40 \text { per unit } \
\text { Fixed Costs (total) } & \$ 60000 \
\text { Unite sold } & 5000
\end{array}$
Required: Calculate the following based on the above information:
A. Net incume
B. Contribution marpin per unit
C. Contribution marpin ratio
D. If Chapman sells 500 more adkitional units, by what amount will net income increase?
E. If Chapman has an additional $\$ 20000$in sales, by what anount will net income increase?

Question

Chapman Products produces a unique item with the following information:
 $\begin{array}{ll}
\text { Sales price } & \$ 100 \text { per unit } \
\text { Variable costs } & \$ 40 \text { per unit } \
\text { Fixed Costs (total) } & \$ 60000 \
\text { Unite sold } & 5000
\end{array}$ 
Required: Calculate the following based on the above information:
 A. Net incume
B. Contribution marpin per unit
C. Contribution marpin ratio
D. If Chapman sells 500 more adkitional units, by what amount will net income increase?
E. If Chapman has an additional $\$ 20000$in sales, by what anount will net income increase?

Quizplus · Accepted Answer

The Answer of Chapman Products produces a unique item with the following information:
 $\begin{array}{ll}
\text { Sales price } & \$ 100 \text { per unit } \
\text { Variable costs } & \$ 40 \text { per unit } \
\text { Fixed Costs (total) } & \$ 60000 \
\text { Unite sold } & 5000
\end{array}$ 
Required: Calculate the following based on the above information:
 A. Net incume
B. Contribution marpin per unit
C. Contribution marpin ratio
D. If Chapman sells 500 more adkitional units, by what amount will net income increase?
E. If Chapman has an additional $\$ 20000$in sales, by what anount will net income increase?

Chapman Products Produces a Unique Item with the Following Information