Contribution Margin: Unit Amounts
Consider the following information on four independent companies.
A | B | C | D | |||||
Sales | $10,000 | $? | $? | $9,000 | ||||
Less: Variable costs | 8,000 | 11,700 | 9,750 | ? | ||||
Contribution margin | $2,000 | $7,800 | $? | $? | ||||
Less: Fixed costs | ? | 4,500 | ? | 900 | ||||
Operating income | $1,000 | $? | $8,000 | $2,850 | ||||
Units sold | ? | 1,300 | 300 | 500 | ||||
Price/Unit | $4 | $? | $? | $? | ||||
Variable cost/Unit | $? | $9 | $? | $? | ||||
Contribution margin/Unit | $? | $6 | $? | $? | ||||
Contribution margin ratio | ? | ? | 75% | ? | ||||
Break-even in units | ? | ? | ? | ? |
Required:
Calculate the correct amount for each question mark. Be sure to round any fractional break-even units up to the next whole number. Round variable unit cost and contribution margin per unit to the nearest cent. Round contribution margin ratio to four decimal places. (Express as a decimal-based amount rather than a whole percent.)
A | B | C | D | |||||
Sales | $10,000 | $ | $ | $9,000 | ||||
Less: Variable costs | 8,000 | 11,700 | 9,750 | |||||
Contribution margin | $ 2,000 | $ 7,800 | $ | $ | ||||
Less: Fixed costs | 4,500 | 900 | ||||||
Operating income | $ 1,000 | $ | $8,000 | $2,850 | ||||
Units sold | 1,300 | 300 | 500 | |||||
Price/Unit | $4 | $ | $ | $ | ||||
Variable cost/Unit | $ | $9 | $ | $ | ||||
Contribution margin/Unit | $ | $6 | $ | $ | ||||
Contribution margin ratio | 0.7500 | |||||||
Break-Even in units |
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