Bluegill Company sells 7,200 units at $340 per unit. Fixed costs are $122,400, and income from operations is $1,346,400. Determine the following: Round the contribution margin ratio to two decimal places.

a. Variable cost per unit	$
b. Unit contribution margin	$	per unit
c. Contribution margin ratio		%

part 2

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are

a.$42,000

b.$25,400

c.$13,000

d.$21,000

If fixed costs are $1,473,000, the unit selling price is $222, and the unit variable costs are $128, what are the break-even sales (units) if fixed costs are increased by $32,700?

Part 3

Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty's variable utilities cost per machine hour. Round to the nearest cent.

	Cost	Machine Hours
March	$3,040	15,430
April	2,645	10,298
May	2,880	12,422
June	3,618	18,112

a.$0.12

b.$0.83

c.$1.25

d.$0.87