Question

Bluegill Company sells 11,000 units at $140 per unit. Fixed costs are $77,000, and income from...

Bluegill Company sells 11,000 units at $140 per unit. Fixed costs are $77,000, and income from operations is $693,000. Determine the following: Round the contribution margin ratio to two decimal places.

a. Variable cost per unit $
b. Unit contribution margin $ per unit
c. Contribution margin ratio %

Homework Answers

Answer #1

First to calculate Calculate contribution margin and then Variable Cost

Equation Answer
Sales Revenue 11000 x 140        1,540,000
Less : Variable Cost Sales Revenue - Contribution Margin (2)           770,000
Contribution Margin Operation Income + Fixed Expense (1)           770,000
Less : Fixed Expenses             77,000
Operation Income           693,000

a. Variable Cost Per Unit =

Total Variable expense / Total Units = 770000 / 11000 = 70

b. Unit Contribution Margin =

Contribution margin / Total units = 770000 / 11000 = 70

c. Contribution Margin Ratio =

Contribution Margin / sales x 100 % = 770000 / 1540000 x 100% = 50%

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bluegill Company sells 14,300 units at $200 per unit. Fixed costs are $143,000, and income from...
Bluegill Company sells 14,300 units at $200 per unit. Fixed costs are $143,000, and income from operations is $1,859,000. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit $ b. Unit contribution margin $ per unit c. Contribution margin ratio %
Bluegill Company sells 12,800 units at $220 per unit. Fixed costs are $140,800 and income from...
Bluegill Company sells 12,800 units at $220 per unit. Fixed costs are $140,800 and income from operations is $985,600. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit $ b. Unit contribution margin $ per unit c. Contribution margin ratio %
Molly Company sells 37,000 units at $36 per unit. Variable costs are $30.60 per unit, and...
Molly Company sells 37,000 units at $36 per unit. Variable costs are $30.60 per unit, and fixed costs are $89,900. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations
United Merchants Company sells 37,000 units at $39 per unit. Variable costs are $30.81 per unit,...
United Merchants Company sells 37,000 units at $39 per unit. Variable costs are $30.81 per unit, and fixed costs are $154,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations $
Contribution Margin Harry Company sells 30,000 units at $33 per unit. Variable costs are $25.08 per...
Contribution Margin Harry Company sells 30,000 units at $33 per unit. Variable costs are $25.08 per unit, and fixed costs are $104,500. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $848 $318 $530 Y 645 345 300 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
2. Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit,...
2. Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $62,000. What is the unit contribution margin? _________________________ What is the contribution margin ratio? _________________________ What is income from operations? ___________________________
Contribution Margin Harry Company sells 21,000 units at $30 per unit. Variable costs are $25.50 per...
Contribution Margin Harry Company sells 21,000 units at $30 per unit. Variable costs are $25.50 per unit, and fixed costs are $31,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Operating income $
Contribution Margin Willie Company sells 29,000 units at $22 per unit. Variable costs are $17.60 per...
Contribution Margin Willie Company sells 29,000 units at $22 per unit. Variable costs are $17.60 per unit, and fixed costs are $38,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $350,000. The...
At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $350,000. 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 $114 and has fixed cost of $421,500. Next year, Sooner expects to sell 14,000 units and make operating income of $184,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT