Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...

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Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following indepe

business accounting

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Answer 1

Answer #1

All amounts are in $

1. Breakeven point = Fixed cost / (Revenue per unit - Variable cost per unit)
135000=	353000
	(Revenue per unit - 0.45)

(Revenue per unit - 0.45) = 353000 / 135000

Revenue per unit = 3.06

2. Operating income = (Sale price per unit - variable cost per unit) * no. of quantity sold - Fixed cost

153000 =(111 - variable cost per unit) * 16600 - 414000
567000 =(111 - variable cost per unit) * 16600
		567000
Variable cost per unit = 34.16
Contribution margin = Sale price per unit - variable cost per unit = 111 - 34.16 = 76.84

Contribution margin ratio = Contribution margin / Sales = 76.84 / 111 = 69.22%

3. Contribution margin ratio = Contribution margin / Sales
0.25 = Contribution margin / 223000

Contribution margin = 55750

Operating income = Contribution margin - Fixed cost
22300 = 55750 - Fixed cost
Fixed cost = 33450

4. Breakeven point = Fixed cost / (Revenue per unit - Variable cost per unit)
21000=	176400 / (Revenue per unit - Variable cost per unit)

21000=	176400 / Contribution margin per unit

Contribution margin per unit = 8.40

As variable cost Rtio is 0.30 means contribution margin is 0.70

So variable cost per unit= (8.40 *0.30 ) / 0.70 = 3.60

So sale price = Contribution margin + variable cost = 8.40 + 3.60 = 12

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Answer 2

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