1. At the break-even point, Jefferson Company sells 85,000 units and has fixed c

Question

1. At the break-even point, Jefferson Company sells 85,000 units and has fixed cost of $353,500. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 4.56 2. Sooner Industries charges a price of $139 and has fixed cost of $456,500. Next year, Sooner expects to sell 13,000 units ane make operating income of $195,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places Variable cost per unit 88.88 Contribution margin ratio 36.061 x % 3. Last year, Jasper Company earned operating income of $27,960 with a contribution margin ratio of 0.3. Actual revenue was $233,000. Calculate the total fixed cost. Note: Round your answer to the nearest dollar, if required. 4. Laramie Company has variable cost ratio of 0.45. The fixed cost is $100,900 and 23,900 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit? Note: Round answers to the nearest cent. Price Variable cost per unit Contribution margin per unit

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Fixed costs            353,500.00 BEP in Units               85,000.00 Contribution per unit = 353500/85000                         4.16 Variable cost per unit                         0.40 Selling price per unit = 4.16 + .40                         4.56 2) Operating income            195,000.00 Fixed costs            456,500.00 Contribution              651,500.00 No of units               13,000.00 Contribution per unit = 651500/13000                  50.1154 Selling price                     139.00 Variable cost per unit                       88.88 Contribution margin ratio = 50.1154/139 36.05% 3) Revenue            233,000.00 Contribution = 233000*.30               69,900.00 Operating Income               27,960.00 Fixed costs               41,940.00 4) Fixed costs            100,900.00 No of units at BEP               23,900.00 Contribution per unit = 100900/23900                            4.2 CM Ratio = 1 - .45                         0.55 Price = 4.22/.55                            7.7 Variable cost per unit = 7.68 * .5                            3.5

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