80.2K

Verified Solution

Link Copied!

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 115,000 units and has fixed cost of $349,600. The variable cost per unit is $4.56. What price does Jefferson charge per unit? Note: Round your answer to the nearest cent. $fill in the blank 1

2. Sooner Industries charges a price of $120 and has fixed cost of $458,000. Next year, Sooner expects to sell 15,600 units and make operating income of $166,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Enter the contribution margin ratio as a percentage, rounded to two decimal places.

Variable cost per unit	$fill in the blank 2 per unit
Contribution margin ratio	fill in the blank 3	%

3. Last year, Jasper Company earned operating income of $22,500 with a contribution margin ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed cost to the nearest whole dollar. $fill in the blank 4

4. Laramie Company has a variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note: 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

Answer & Explanation Solved by verified expert

See Answer