Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For each of the following independent situations, calculate the amount(s) required, Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed

image text in transcribed
For each of the following independent situations, calculate the amount(s) required, Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $345,500. The variable cost per unit is $0.35. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2.56 X 2. Sooner Industries charges a price of $127 and has fixed cost of $417,500. Next year, Sooner expects to sell 14,800 units and make operating income of $193,000 What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places, Variable cost per unit 28.21 X Contribution margin ratio 3. Last year, Jasper Company earned operating income of $14,400 with a contribution margin ratio of 0.15. Actual revenue was $240,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. 21,600 4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $63,250 and 23,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note: Do NOT round interim computations. Round answers to the nearest cent. Price 2.75 X Vanable cost per unit 5.4 x Contribution margin per unit 2.65 x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago