For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point,

Question:

For each of the following independent situations, calculate the amount(s) required.

Required:
1. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The variable cost per unit is $4.56. What price does Jefferson charge per unit?
2. Sooner Industries charges a price of $120 and has fixed cost of $458,000. Next year, Sooner expects to sell 15,600 units and make operating income of $166,000. What is the variable cost per unit? What is the ratio (Note: Round answer to four decimal places)?
3. Last year, Jasper Company earned operating income of $22,500 with a ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost.
4. Laramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at breakeven. What is the price? What is the variable cost per unit? The per unit?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...