WileyPLUS M Carla Vista Co. has these Sharmzoy CSecure https://edugen.wileyplus.

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WileyPLUS M Carla Vista Co. has these Sharmzoy CSecure https://edugen.wileyplus.com/ed : Apps G Google Yaho NVAS Spartan Apps Portal Other bookmark WileyPLUS Kimmel, Accounting, Ge ACCOUNTING-Financial & Managerial (BUS 186BUS 187) Home Re d, Study & Practice Gradebook ORION Downloadable eTextbook Assignment>Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION BACK ASSIGNMENT Exercise 18-12 (Part Level Submission) In 2016, Manhoff Company had a break-even point of 372,000 based on a selling price of S6 per unit and fixed costs of S 159,000. In 2017 the selling price and the vanable costs per unit did not change, but the break-even point increased to $495,000 (a) Your answer is partially correct. Try again. Compute the voriable costs per unit and the contribution margin ratio for 2016. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to 0 decimal places, e.g 25.) Variable costs per unit Contribution margin ratio Click if you would like to Show Work for this question: Attempts: 3 of 5 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above All Rights Reserved. A Division of Version 4.24.2.4 9:55 PM 11/12/2017 2 Type here to search

Explanation / Answer

GIven selling price per unit = $6.

first let us calculate the variable cost per unit.

break even point = $372,000.

=> break even units = $372,000 / $6 =>62,000units.

contribution per unit = fixed costs /break even units

=>$159,000 / 62,000

=>$2.56....(rounded to two decimals).

now,

variable cost per units = selling price - contribution per unit

=>$6.00 -$2.56

=>$3.44 per unit.

now,

Contribution margin ratio

=> contribution per units / sale price unit

=>$2.56 / $6

=>0.426666

=>42.66%

=>43%.....(when rounded to zero decimals).

Contribution margin ratio = 43%

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