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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 135.000 units and has fixed cost of $345,000. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $123 and has fixed cost of $405,500, Next year, Sooner expects to sell 15,500 units and make operating income of $195,000. 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 Contribution margin ratio

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 135.000 units and has fixed cost of $345,000. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $123 and has fixed cost of $405,500, Next year, Sooner expects to sell 15,500 units and make operating income of $195,000. 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 Contribution margin ratio

FINANCIAL ACCOUNTING
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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Print Item 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 135,000 units and has fixed cost of $345,000. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $123 and has fixed cost of $405,500, Next year, Sooner expects to sell 15,500 units and make operating income of $195,000. 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 Contribution margin ratio 3. Last year, Jasper Company earned operating income of $18,640 with a contribution margin ratio of 0.2. Actual revenue was $233,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. 4. Laramie Company has variable cost ratio of 0.30. The fixed cost is $117,600 and 21,000 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
Transcribed Image Text:Print Item 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 135,000 units and has fixed cost of $345,000. The variable cost per unit is $0.15. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $123 and has fixed cost of $405,500, Next year, Sooner expects to sell 15,500 units and make operating income of $195,000. 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 Contribution margin ratio 3. Last year, Jasper Company earned operating income of $18,640 with a contribution margin ratio of 0.2. Actual revenue was $233,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. 4. Laramie Company has variable cost ratio of 0.30. The fixed cost is $117,600 and 21,000 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
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