Chapman Products Produces a Unique Item with the Following Information

question 30

Essay

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?

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Definitions:

Inequitable

Unfair, unjust, or not equal in a way that disadvantages someone.

Household Chores

Tasks and activities done to manage a household, such as cleaning, cooking, and laundry.

Successful Marriages

Marital relationships characterized by longevity, mutual satisfaction, commitment, and the ability to navigate conflicts constructively.

Equity

A condition in which people receive from a relationship in proportion to what they give to it.