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Bluegill Company sells 15,700 units at $360 per unit. Fixed costs are $282,600, and income from operations is $1,413,000. Det
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Answer #1
Sales $5,652,000 (15,700*$360)
Variable costs $3,956,400 ($5,652,000-$1,695,600)
Contribution margin $1,695,600 ($282,600+$1,413,000)
Fixed costs $282,600
Net operating income $1,413,000

a. Variable cost per unit = $3,956,400 / 15,700 = $252

b. Unit contribution margin = $1,695,600 / 15,700 = $108

c. Contribution margin ratio = Unit contribution margin / Selling price per unit

= $108 / $360 * 100

= 30%

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