Reference no: EM131560915

Problem -

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 135,000 units and has fixed cost of $349,000. The variable cost per unit is $0.35. What price does Jefferson charge per unit? Round to the nearest cent.

2. Sooner Industries charges a price of $97 and has fixed cost of $348,500. Next year, Sooner expects to sell 10,700 units and make operating income of $180,000. What is the variable cost per unit? What is the contribution margin ratio? Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.

3. Last year, Jasper Company earned operating income of $14,640 with a contribution margin ratio of 0.15. Actual revenue was $244,000. Calculate the total fixed cost. Round your answer to the nearest dollar, if required.

4. Laramie Company has variable cost ratio of 0.4. The fixed cost is $103,820 and 24,400 units are sold at breakeven. What is the price? What is the variable cost per unit? The contribution margin per unit?