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 105,000 units and has fixed cost of $353,800. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent.

2. Sooner Industries charges a price of $79 and has fixed cost of $474,500. Next year, Sooner expects to sell 18,900 units and make operating income of $188,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

Variable cost per unit	$______ per unit
Contribution margin ratio	________%

3. Last year, Jasper Company earned operating income of $22,300 with a contribution margin ratio of 0.25. Actual revenue was $223,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required.

4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $133,650 and 27,000 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note : Do NOT round interim computations. Round answers to the nearest cent.

Price	$____________
Variable cost per unit	$____________
Contribution margin per unit	$____________