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Contribution Margin, Unit Amounts, Break-Even Units Information on four independent companies follows. Calculate the correct amount for each answer...

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

Top Answer

Formulae: Sales - Variable cost = Contribution margin Contribution margin - Fixed costs = Net operating income Units sold =... View the full answer

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Other Answers

Please find below answers to your... 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

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