Question
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.
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 85,000 units and has fixed cost of $354,100. The variable cost per unit is $0.25. What price does Jefferson charge per unit? Note: Round to the nearest cent. $fill in the blank 1
2. Sooner Industries charges a price of $127 and has fixed cost of $367,500. Next year, Sooner expects to sell 11,300 units and make operating income of $174,000. 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 | $fill in the blank 2 | |
Contribution margin ratio | fill in the blank 3 | % |
3. Last year, Jasper Company earned operating income of $18,240 with a contribution margin ratio of 0.2. Actual revenue was $228,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. $fill in the blank 4
4. Laramie Company has variable cost ratio of 0.40. The fixed cost is $162,000 and 27,000 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 | $fill in the blank 5 |
Variable cost per unit | $fill in the blank 6 |
Contribution margin per unit | $fill in the blank 7 |
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