Question

1. A recent income statement of Bantom Corporation reported the following data: Sales revenue $ 8,358,000 Variable costs 4,998,000 Fixed costs 3,130,000 If these data are based on the sale of 21,000 units, the contribution margin per unit would be:

Multiple Choice

$50. $160. $300. $370.

2.  

Bloomfield Stores reported sales revenues of $720,000, a total contribution margin of $200,000, and fixed costs of $325,000. If sales volume amounted to 10,000 units, the company's variable cost per unit must have been:

Multiple Choice

• $14.

• $34.

• $52.

• $94.

• None of the answers is correct.

Answer 1

1	Income Statement
		Total	Per unit
	Sales(21000 units)	$       83,58,000.00	$                      398.00
	Variable expenses	$       49,98,000.00	$                      238.00
	Contribution Margin	$       40,00,000.00	$                      160.00
	Fixed expenses	$       31,30,000.00
	Net Operating Income	$         8,70,000.00
	So Contribution Margin per unit is $160
2		Total	Per unit
	Sales Revenue(10,000 units)	$         7,20,000.00	$                        72.00
	Less:Contribution Margin	$         2,00,000.00	$                        20.00
	Variable Costs	$         5,20,000.00	$                        52.00
	So Variable Costs per unit is $52