Question
In: Accounting
Contribution Margin Molly Company sells 23,000 units at $46 per unit. Variable costs are $25.76 per...
Contribution Margin
Molly Company sells 23,000 units at $46 per unit. Variable costs are $25.76 per unit, and fixed costs are $181,600.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
| a. Contribution margin ratio (Enter as a whole number.) | % | |
| b. Unit contribution margin (Round to the nearest cent.) | $ | per unit |
| c. Operating income |
Solutions
Expert Solution
| 1) | Contribution margin ratio | ||
| Contribution margin per unit | 20.24 | ||
| Selling price per unit | 46 | ||
| Contribution margin ratio | 44.00% | ||
| 2) | Contribution margin per unit | ||
| Selling price | 46 | ||
| Less: VC per room | 25.76 | ||
| Contribution margin per unit | 20.24 | ||
| Contribution margin ratio | 44% | ||
| 3) | Calculate total fixed cost | ||
| Total sales | 1,058,000 | ||
| Less: VC | 592,480 | ||
| Contribution margin | 465,520 | ||
| LESS: Fixed cost | 181,600 | ||
| Net INCOME | 283,920 | ||
ekkarill92 answered 2 years agoRelated Solutions
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2.) Harry Company sells 27,000 units at $34 per unit. Variable costs are $21.08 per unit,...
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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
$
3.) Megan Company has fixed costs of $505,920. The unit selling
price, variable cost per unit,...
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 85,000 units and has
fixed cost of $348,600. The variable cost per unit is $0.35. What
price does Jefferson charge per unit? Note: Round to the
nearest cent.
$
2.
Sooner Industries charges a price of $127 and has fixed cost of
$360,500. Next year, Sooner expects to...
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?
Note: Round to the nearest cent.
$
2. Sooner Industries charges a price of $129
and has fixed cost of $421,000. Next year, Sooner expects to...
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 85,000 units and has fixed cost of $351,900. The variable
cost per unit is $0.30. What price does Jefferson charge per unit?
Note: Round to the nearest cent.
$
2. Sooner Industries charges a price of $136
and has fixed cost of $391,500. Next year, Sooner expects to...
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 85,000 units and has fixed cost of $346,500. The variable
cost per unit is $0.10. What price does Jefferson charge per unit?
Note: Round to the nearest cent.
$
2. Sooner Industries charges a price of $98 and
has fixed cost of $476,500. Next year, Sooner expects to...
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 115,000 units and has fixed cost of $346,800. The variable
cost per unit is $0.10. What price does Jefferson charge per unit?
Note: Round to the nearest cent.
$
2. Sooner Industries charges a price of $116
and has fixed cost of $395,500. Next year, Sooner expects to...
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
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cost per unit is $0.20. What price does Jefferson charge per unit?
Round to the nearest cent.
$
2. Sooner Industries charges a price of $93 and
has fixed cost of $481,500. Next year, Sooner expects to sell...
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