4-26

Last year, Jasper Company earned operating income of $22,500 with a contribution margin 14uo!OVlE! Round answer to 3. four decimal places) ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost. ramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at bution margin per unit? breakeven. What is the price? What is the variable cost per unit? The contri- Exercise 4-26 Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Pelley Company prepared the following projected income statement: Sales Total variable cost $95,000 68,400 $26,600 14.000 $12,600 Contribution margin Total fixed c Opera Required: 1. Calculate the contribution margin ratio. 2. Calculate the variable cost ratio. 3. Calculate the break-even sales revenue for Pelley 4. CONCEPTUAL CONNECTION How could Pelley increase projected operating income without increasing the total sales revenue? exercise 4-27 Income Statement, Break-Even Units, Units to Earn Target Income OB Melford Company sold 26,800 units last year at $16.00 each. Variable cost was $11.50, and total fixed cost was $126,000. Required