Question

Chapter 6 Assignment i Saved Juniper Enterprises sells handmade clocks. Its variable cost per clock is $16.10, and each clock sells for $23. 10 Calculate Juniper's contribution margin per unit and contribution margin ratio. If the company's fixed costs total $5,037, determine how many clocks Juniper must sell to break even. points Complete this question by entering your answers in the tabs below. eBook Contribution Break Even Margin Point Print Calculate Juniper's contribution margin per unit and contribution margin ratio. (Round your "Unit Contribution Margin" answer to 2 decimal places.) References Unit contribution margin Contribution margin ratio % <Contribution Margin Break Even Point>

Answer 1

(1)

	Contribution margin = Sales - Variable cost
	Contribution margin ratio =( Contribution per unit/Sales)
A.	Sales price per unit	23.00
B.	variable cost per unit	16.10
C.	Contribution margin per unit (A-B)	6.90
D.	Contribution margin ratio (C/A)	0.30

(2)

Calculation of Break even sales :-

Break even point = (Fixed Cost / contribution per unit)

= ($5,037 / 6.90)

= 730 clocks Juniper need to be sold to achieve break even.