Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1.

image text in transcribed

Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of $345,100. The variable cost per unit is $0.30. What price does Jefferson charge per unit? Note: Round to the nearest cent. $ 2. Sooner Industries charges a price of $144 and has fixed cost of $457,000. Next year, Sooner expects to sell 11,600 units and make operating income of $199,000. 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 Contribution margin ratio % 3. Last year, Jasper Company earned operating income of $17,760 with a contribution margin ratio of 0.2. Actual revenue was $222,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. $ 4. Laramie Company has variable cost ratio of 0.40. The fixed cost is $138,600 and 21,000 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 Variable cost per unit IT Contribution margin per unit $

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_2

Step: 3

blur-text-image_3

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

The Management Audit How To Create An Effective Management Team

Authors: Michael Craig-Cooper, Philippe De Backer

1st Edition

0273600044, 978-0273600046

Students also viewed these Accounting questions

Question

What are the stages of project management? Write it in items.

Answered: 1 week ago

Question

why do consumers often fail to seek out higher yields on deposits ?

Answered: 1 week ago

Question

6. Explain the strengths of a dialectical approach.

Answered: 1 week ago