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:

IMC Budgeting

Involves allocating financial resources for Integrated Marketing Communications, ensuring a strategic mix of advertising, sales promotion, public relations, and direct marketing efforts.

Prior Sales

Historical sales data or transactions that have occurred before a specific point in time, used for analysis or forecasting.

Frequency Of Exposure

Refers to the number of times a consumer comes into contact with a particular advertising message over a set period.

Marketing Message

A key piece of communication from a company to its target audience, designed to convey the value proposition and benefits of its products or services.