1 Calculate the variable cost per unit when a unit is sold for $100 each and the...
Question:
1 Calculate the variable cost per unit when a unit is sold for $100 each and the contribution margin per unit is $40
2 Calculate the contribution margin ratio when a unit sells for $50 each and it costs $35 to make one
3 Patrick Company sells Kevlar cooking mitts for $75 per pair.He had the following business results last year.Assuming costs are stable, how many pairs does he have to sell next year to break even?
- Sales$750,000
- Variable250,000
- Contribution Margin500,000
- Fixed Costs850,000
- Net income(350,000)
4 Kayla Company sells high functioning blenders $450 each. She sold 8,000 blenders last year and had total variable costs of $1,500,000. Fixed costs were $3,000,000. Assuming costs are stable, how many blenders does she have to sell next year to break even? (round to the next highest unit)
5 Calculate the variable cost per unit when the unit is sold for $150 each and the contribution margin ratio is 35%.
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen