Emeka Company has provided the following information Sales price per unit 52

Emeka company has provided the following information

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17. Emeka Company has provided the following information:Sales price per unit\$52Variable cost per unit16Fixed costs per month14,000Calculate the contribution margin per unit. 18. Contribution margin ratio is equal to________. 19. Carrabelle Company has provided the following information:Sales price per unit\$56Variable cost per unit12Fixed costs per month12,000Calculate the contribution margin ratio. (Round your answer to two decimal places.) 20. Robusta Coffee Importers sold7,000units in October at a sales price of\$45per unit. The variable cost is\$20per unit. The monthly fixed costs are\$8,000.What is the operating income earned inOctober?
21. Clay Earth Company sells ceramic pottery at a wholesale price of\$5per unit. The variable cost of manufacture is\$2.50per unit. The fixed costs are\$6,200per month. It sold5,700units during this month. Calculate ClayEarth'soperating income(loss)for this month. 22. Sunlight Design Corporation sells glass vases at a wholesale price of\$4.50per unit. The variable cost to manufacture is\$1.75per unit. The monthly fixed costs are\$8,500.Its current sales are29,000units per month.If the company wants to increase its operating income by20%,how many additional units must itsell?(Round any intermediate calculations to two decimal places and your final answer upto the nearest wholeunit.) 23. Martin was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for \$900, and the fixed monthly operating costs are as follows:Rent and utilities\$800Wages and benefits to luthier2,000Other expenses474
Martin's accountant told him about contribution margin ratios, and Martin understood clearly that for every dollar of sales, \$0.65 went to cover his fixed costs, and anything abovethat point was profit.Martin wishes to earn \$4,000 of operating profit each month. Calculate the number of guitars Martin will need to sell to achieve the target profit. (Round your answer upto the nearest whole guitar.)

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• Fall '08
• LOPEZ