Question
In: Accounting
Contribution Margin Harry Company sells 35,000 units at $26 per unit. Variable costs are $17.42 per...
Contribution Margin
Harry Company sells 35,000 units at $26 per unit. Variable costs are $17.42 per unit, and fixed costs are $126,100.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
| a. Contribution margin ratio (Enter as a whole number.) | % | |
| b. Unit contribution margin (Round to the nearest cent.) | $ | per unit |
| c. Income from operations | $ |
Solutions
Expert Solution
|
contribution margin ratio |
33% |
|
Unit contribution margin |
$8.58 per unit |
|
Income from operations |
$174,200 |
Working:
- Contribution margin ratio=contribution margin/Sales
=(8.58/26)=33%
- Contribution margin=Sales-Variable cost
=(26-17.42)=$8.58 per unit
- Contribution margin at 36000 units=($8.58*35000)=$300,300
Less: Fixed cost=$(126,100)
Income from operations=$174,200
ekkarill92 answered 6 months agoRelated Solutions
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Break-Even Point
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3.) Megan Company has fixed costs of $505,920. The unit selling
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c. Fixed costs per unit at production of
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Sales (10,000units) $ 70,000 Less variable costs (35,000)
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For each of the
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Required:
1. At
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Sooner Industries charges a price of $127 and has fixed cost of
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Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
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 95,000 units and has fixed cost of $349,700. The variable
cost per unit is $0.15. What price does Jefferson charge per unit?
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$
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Note: Round to the nearest cent.
$
2. Sooner Industries charges a price of $98 and
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