Question

Determine the missing amounts in the following table: (Round your percentage answers to the answers to 2 decimal places.) Answer is complete but not entirely correct. Unit Variable Costs $ 6.00 Unit Sales Price 34.00 27.00 32.00 Unit Contribution Margin $ 28.00 Contribution Margin Ratio $ 82% 59% 11.00 16.00 42.39 X 10.39 X 32 %

Answer 1

Determine the missing amounts in the following table :

Unit sales price	Unit Variable cost	Unit Contribution margin	Contribution margin ratio
$34.00	$6.00	$28.00	82%
$27.00	$11.00	$16.00	59%
$32.00	$21.76	$10.24	32%

Unit Contribution margin = Unit sales price * Contribution margin ratio

= $32.00 * 32%

= $10.24

Unit Variable cost = Unit sales price - Unit contribution margin

= $32.00 - $10.24

= $21.76

Unit contribution margin	$9.60
Contribution margin ratio	60%

Unit contribution margin = Unit sales price - Unit variable cost

= $16.00 - $6.40

= $9.60

Contribution margin ratio = Unit Contribution margin / Unit sales price

= $9.60 / $16.00

= 60%

Break even point in units = Fixed costs / Contribution margin per unit

= $7,200 / $9.60

= 750 clocks