Question

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?
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: Round answer to four decimal places)?
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.
4. Laramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at breakeven. What is the price? What is the variable cost per unit? The contribution margin per unit?


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  • CreatedSeptember 22, 2015
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