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Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $420,000 Variable cost 310,800 Contribution margin $109,200 Fixed cost 62,660 Operating
Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $420,000 Variable cost 310,800 Contribution margin $109,200 Fixed cost 62,660 Operating income $46,540 Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers. 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to two decimal places. Unit variable cost Unit contribution margin $ 2. Calculate the contribution margin ratio and the variable cost ratio. Contribution margin ratio % Variable cost ratio % 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Refe as positive numbers. Larimer Company Contribution Margin Income Statement At Break-Even Number of Units 1 2 3 4 5 Arberg Company's controller prepared the following budgeted income statement for the coming year: Sales $420,000 Variable cost 310,800 Contribution margin $109,200 Fixed cost 62,660 Operating income $46,540 Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers. 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to two decimal places. Unit variable cost Unit contribution margin $ 2. Calculate the contribution margin ratio and the variable cost ratio. Contribution margin ratio % Variable cost ratio % 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Refe as positive numbers. Larimer Company Contribution Margin Income Statement At Break-Even Number of Units 1 2 3 4 5
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