Contribution Margin, Unit Amounts, Break-Even Units
Information on four independent companies follows. Calculate the correct amount for each answer blank.
Unless otherwise instructed, round all total dollar figures (e.g., sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Use the minus sign to indicate an operating loss.
Laertes Ophelia Fortinbras Claudius Sales $15,000 $ $ $10,600 Total variable cost $5,000 $11,700 $9,750 $ Total contribution margin $10,000 $3,900 $ $ Total fixed cost $ $4,000 $ $4,452 Operating income (loss) $500 $ $364 $848 Units sold units 1,300 units 125 units 1,000 units Price per unit $5.00 $ $130.00 $ Variable cost per unit $ $9.00 $ $ Contribution margin per unit $ $3.00 $ $ Contribution margin ratio % % 40% % Break-even units units units units units
Formulae: Sales - Variable cost = Contribution margin Contribution margin - Fixed costs = Net operating income Units sold =... View the full answer
Sign up to view the full answer
Sales: The total quantity sold multiplied by price per unit, is sales. Variable Cost: The cost that changes with the change... View the full answer