Bluegill Company sells 12,500 units at $300 per unit. Fixed costs are $187,500, and operating income is $2,437,500. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin ratio. Round the contribution margin ratio to two decimal places. a. Variable cost per unit b. Unit contribution margin c. Contribution margin ratio % per unit

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
icon
Related questions
Question
Bluegill Company sells 12,500 units at $300 per unit. Fixed costs are $187,500, and operating income is $2,437,500. Determine the (a) variable cost per
unit, (b) unit contribution margin, and (c) contribution margin ratio. Round the contribution margin ratio to two decimal places.
a. Variable cost per unit
b. Unit contribution
margin
c. Contribution margin
ratio
%
per
unit
Transcribed Image Text:Bluegill Company sells 12,500 units at $300 per unit. Fixed costs are $187,500, and operating income is $2,437,500. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin ratio. Round the contribution margin ratio to two decimal places. a. Variable cost per unit b. Unit contribution margin c. Contribution margin ratio % per unit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College