Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required.

Required:

a. At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of $349,600. The variable cost per unit is $4.56. What price does Jefferson charge per unit?
b. Sooner Industries charges a price of $120 and has fixed cost of $458,000. Next year, Sooner expects to sell 15,600 units and make operating income of $166,000. What is the variable cost per unit? What is the contribution margin ratio?
c. Last year, Jasper Company earned operating income of $22,500 with a contribution margin ratio of 0.25. Actual revenue was $235,000. Calculate the total fixed to the nearest whole dollar.
d. Laramie Company has a variable cost ratio Of 0.56. The fixed cost is $103,840 and 23,600 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.

The calculations are shown below.

Explanation:

The computation is shown below:

a. The price charged per unit is

= Variable cost per unit + Contribution margin per unit

where,

Variable cost per unit is $4.56

And, the contribution margin per unit is      

Contribution margin per unit = Fixed cost ÷ Break even units  

$349,600 ÷ 115000

= $3.04 per unit

So, the price charged is  

= $4.56 + $3.04

= $7.60 per unit  

b. The variable cost per unit is

= Selling price per unit - contribution margin per unit

where,

Selling price per unit = $120  

And, the Contribution margin per unit is

= ($458,000 + $166,000) ÷ 15,600 units

= $40 per unit  

So, the variable cost per unit is

= $120 - $40

= $80 per unit

And, the contribution margin ratio is  

= Contribution margin per unit ÷ Selling price per unit  

= $40 ÷ $120 × 100

= 33.33%  

c. The total fixed cost is

= Contribution - Net income  

= $235,000 × 0.25 - $22,500

= $58,750 - $22,500    

= $36,250  

d. Contribution margin per unit is

= $103,840 ÷ 23,600 units

= $4.40 per unit

And,  Selling price per unit is

= $4.40 ÷ 44%

= $10 per unit  

And, Variable cost per unit is

= $10 × 56%

= $5.60 per unit  

Since the variable cost ratio is 0.56

So, we assume the sales is 0.100

And, the contribution margin ratio is 0.44

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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