**Problem Statement:**Bluegill Company sells 15,500 units at $220 per unit. Fixed costs are $170,500, and operating income is $1,534,500. Determine the following:a. Variable cost per unit: $[___]b. Unit contribution margin: $[___] per unitc. Contribution margin ratio: [___] %**Explanation:**The problem requires determining the financial metrics needed to analyze the company's performance. The first step is calculating the variable cost per unit. Next, find the unit contribution margin by subtracting variable costs from the selling price. Finally, calculate the contribution margin ratio to understand the proportion of sales contributing to fixed costs and operating income.

Answered: Bluegill Company sells 15,500 units at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bluegill Company sells 15,500 units at $220 per unit. Fixed costs are $170,500, and operating income is $1,534,500. Determine the following: a. Variable cost per unit b. Unit contribution margin c. Contribution margin ratio $ per unit %