Calculate the contribution margin ratio

Assignment Help Accounting Basics

Reference no: EM131972344

Problem

SALES Price	65.00
Variable Manufacturing Expense per unit	18.00
variable marketing expense per unit	8.00
variable administrative expenses per unit	3.00
fixed manufacturing overhead	2,375,000.00
fixed operating expenses	275,000.00
Number of Coolers produced and sold	230,000

Coolpak Company sells coolers. Their controller requests that you prepare a contribution margin income statement and do an analysis to determine the following items:

1. Total Sales, Variable Costs, Contribution Margin, & Operating Income (round to the nearest whole dollar)
2. Contribution margin per unit (round to two decimal places)
3. Breakeven point in units (round up to the nearest whole unit)
4. Breakeven point in dollars (round to the nearest whole dollar)
5. Calculate the contribution margin ratio (format the answer as a percent and round your percentage one decimal place)
6. Calculate variable cost as a percentage of selling price.(format the answer as a percent and round your percentage one decimal place)
7. Calculate operating leverage. Coolpak's projected data for the upcoming year, 2017, is presented above.

Reference no: EM131972344

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