Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

United Merchants Company sells 3 0 , 0 0 0 units at $ 3 9 per unit. Variable costs are $ 2 2 . 6

United Merchants Company sells 30,000 units at $39 per unit. Variable costs are $22.62 per unit, and fixed costs are $196,600.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1
%
b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2
per unit
c. Operating income

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

Principles Of Cost Accounting

Authors: Vanderbeck

13th Edition

0324191693, 978-0324191691

More Books

Students also viewed these Accounting questions

Question

Compare the advantages and disadvantages of external recruitment.

Answered: 1 week ago

Question

Describe the typical steps in the selection process.

Answered: 1 week ago