Question
In: Accounting
Determine the missing amounts. Unit Selling Price Unit Variable Cost Unit Contribution Margin Contribution Margin 1....
Determine the missing amounts.
Unit Selling Price Unit Variable Cost Unit Contribution Margin Contribution Margin
1. $550 $231 $ %
2. $450 $ $216 %
3. $ $ $360 20%
Solutions
Expert Solution
| Case-1 | |||||||
| Unit contribution margin: | |||||||
| Selling price | 550 | ||||||
| Less: VC per unit | 231 | ||||||
| Unit contribution margin: | 319 | ||||||
| Contribution margin %: | |||||||
| Unit contribution | 319 | ||||||
| Divide: Selling price | 550 | ||||||
| Contribution margin %: | 58.00% | ||||||
| Case-2 | |||||||
| Variable cost per unit: | |||||||
| Selling price per unit | 450 | ||||||
| Less: unit contribution | 216 | ||||||
| Variable cost per unit: | 234 | ||||||
| Contribution margin %: | |||||||
| Unit contribution | 216 | ||||||
| Divide: Selling price | 450 | ||||||
| Contribution margin %: | 48.00% | ||||||
| Case-3 | |||||||
| Selling price per unit | |||||||
| Unit contribution | 360 | ||||||
| Divide: Contribution margin % | 20% | ||||||
| Selling price per unit | 1,800 | ||||||
| Variable cost per unit: | |||||||
| Selling price per unit | 1800 | ||||||
| Less: unit contribution | 360 | ||||||
| Variable cost per unit: | 1440 | ||||||
| Sellig price | VC per unit | Unit Contribution | Contribution margin% | ||||
| 1 | 550 | 231 | 319 | 58% | |||
| 2 | 450 | 234 | 216 | 48% | |||
| 3 | 1800 | 1440 | 360 | 20% | |||
ekkarill92 answered 3 years agoRelated Solutions
The following are the selling price, variable costs, and contribution margin for one unit of each...
The following are the selling price, variable costs, and
contribution margin for one unit of each of Banner Company’s three
products: A, B, and C:
Product
A
B
C
Selling price
$
140.00
$
110.00
$
130.00
Variable costs:
Direct materials
85.00
34.00
75.00
Direct labour
17.50
28.00
14.00
Variable manufacturing overhead
2.50
4.00
2.00
Total variable cost
105.00
66.00
91.00
Contribution margin
$
35.00
$
44.00
$
39.00
Contribution margin ratio
25
%
40
%
30
%
Due to...
The following are the selling price, variable costs, and contribution margin for one unit of each...
The following are the selling price, variable costs, and
contribution margin for one unit of each of Banner Company’s three
products: A, B, and C:
Product
A
B
C
Selling price
$
70.00
$
130.00
$
180.00
Variable costs:
Direct
materials
30.50
51.00
114.00
Direct
labour
12.00
32.00
24.00
Variable
manufacturing overhead
3.00
8.00
6.00
Total variable
cost
45.50
91.00
144.00
Contribution
margin
$
24.50
$
39.00
$
36.00
Contribution margin
ratio
35
%
30
%
20
%
Due to...
The following are the selling price, variable costs, and contribution margin for one unit of each...
The following are the selling price, variable costs, and
contribution margin for one unit of each of Banner Company’s three
products: A, B, and C:
Product
A
B
C
Selling price
$
130.00
$
140.00
$
140.00
Variable costs:
Direct materials
64.50
44.00
84.80
Direct labour
15.00
30.00
12.00
Variable manufacturing overhead
5.00
10.00
4.00
Total variable cost
84.50
84.00
100.80
Contribution margin
$
45.50
$
56.00
$
39.20
Contribution margin ratio
35
%
40
%
28
%
Due 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 $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
sells 85,000 units and has fixed cost of $349,900. The variable
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...
Determine the missing amounts. (Round answers to 0 decimal places, e.g. 1,225.) Unit Selling Price Unit...
Determine the missing amounts. (Round answers to 0
decimal places, e.g. 1,225.)
Unit Selling
Price
Unit Variable
Costs
Unit Contribution
Margin
Contribution Margin
Ratio
1.
$510
$410
$
(a)
% (b)
2.
$380
$
(c)
$140
% (d)
3.
$
(e)
$
(f)
$420
40
%
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