Absorption Costing

I am happy to help with problems, but presumably whatever book you found these question in also has the answers! Please tell me what problem you are having and I will then try and help, but do not just set me questions to answer.

Suppose sales were $100. Then variable costs would be $60 and contribution would be $40. If selling prices go up by 10% then they go to $110. Variable costs do not change and therefore contribution would be $50. Increase in contribution is 10/40 = 25%

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