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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 4-25 Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense
For each of the following independent situations, calculate the amount(s) required.
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Required:
1.      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?
2.      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? (Note: Round answer to four decimal places)
3.      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 cost.
4.      Laramie Company has variable cost ratio of 0.56. The fixed cost is $103,840 and 23,600 units are sold at breakeven. What is the price? What is the variable cost per unit? The contri- bution margin per unit?
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