Harry’s Ham, Inc. sells hams during the major holiday seasons.


Question Description:

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Harry’s Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs. Calculate contribution margin per ham. If sales increase by $40,000, how much will operating income increase?

Answer

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