Question
Bluegill Company sells 7,500 units at $160 per unit. Fixed costs are $60,000 and income from operations is $300,000. Determine
the following: Round the contribution margin ratio to two decimal places.
a. Variable cost per unit
b. Unit contribution margin
per unit
c. Contribution margin ratio
Expand
Transcribed Image Text

Bluegill Company sells 7,500 units at $160 per unit. Fixed costs are $60,000 and income from operations is $300,000. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit b. Unit contribution margin per unit c. Contribution margin ratio

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Management

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Rakesh started business on 1st Jan 2018 and had not maintained any kind of books to record transacti...

A: Formulas:

Q: 10. A business operated at 100% of capacity during its first month, with the following results: S...

A: Contribution margin:   Contribution margin is a product's price minus all associated variable costs,...

Q: MASTERY PROBLEMJohn Neff owns and operates Waikiki Surf Shop. A year-end trial balance is providedon...

A: Definition:

Q: The general ledger of Megan Corporation as of December 31, 2018, includes the following accounts:   ...

A: An intangible object is something that cannot be touched, is hard to describe, or assign an exact va...

Q: PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountai...

A: Contribution margin ratio:   The contribution margin ratio is the difference between a company’s sal...

Q: From the following transactions for Casio Company, find the required balances for the month ended No...

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received an...

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bondsat a market interest ra...

A: Premium on Bonds Payable = Issue value of bonds - Face value of Bonds = $20,811,010 - $20,000,000 = ...

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bondsat a market interest ra...

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for t...

Q: Before any year-end adjustments were made, the profit of Pedro Co. was P2,000,000. However, the foll...

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made a...

Q: Financial info to be used by surnames with initials (S, W, G, Z)   Simple Things Industries Lt...

A: The cash flow statement is the statement that shows all the inflows and outflows of cash and cash eq...

Q: .  If Canace Company, with a break-even point at $368,000 of sales, has actual sales of $460,000, wh...

A: Break-even analysis is a technique widely used by the production department. It helps to determine t...

Q: On March 1, Dillmore Corporation had office supplies on hand of $900. During the month, Dill-more pu...

A: This numerical has covered the concept of Adjusting Entries. The adjusting entry was passed at the e...

Q: Accounting Question

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share ...

Q: Resources' requirements, standard pounds per unit Resources' standard price, per pound Units produce...

A: Formula: Direct materials price variance = ( Standard price - actual price ) x Actual quantity. Dedu...

Q: Hi, I need help with this. It is just for practice for myself

A: Inventory: It refers to the items held by an organization which were in various forms like raw mater...

Q: Profit Margin, Investment Turnover, and ROI Cash Company has income from operations of $55,704, inve...

A: Solution: Dupont formula is an expression which breaks return on investment into two parts presently...

Q: At the beginning of the period, the Grinding Department budgeted direct labor of $72,600 and propert...

A: Budgeted direct labor cost per hour = budgeted direct labor cost / Budgeted hours = $72,600 / 6,600 ...

Q: List two factors F. Raser should consider in deciding whether to raise finance by issuing loan notes...

A: Financing decisions are very important for a firm /company. Financing decisions relates to selection...

Q: Solvency and Profitability Trend Analysis (Picture is attached and this is the only one I got wrong,...

A: Return on total assets = Net income/Average Total assets where, Average Total assets = (Beginning To...

Q: 6.A business operated at 100% of capacity during its first month, with the following results: Sal...

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to ...

Q: Please do not reject as incomplete I will submit the other portion as another question.Please answer...

A: Income statement is one of the financial statements of the company, which states the revenue and the...

Q: Accounting Question

A: Bond is essentially a debt investment wherein investor finances money to an entity for a specified t...

Q: Make the four journal entries required to close the books.

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in...

Q: You are the lead S-Corporations tax specialist in your area. Your client, Cathyrn, has purchased an ...

A: The following are the criteria which should be fulfilled for recognizing a company as S Corporation:...

Q: Case: Mercurial Company has made the following information available for its production facility for...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: Stockton Company Adjusted Trial Balance December 31 Cash 6,027 Accounts Receivable 2,599 Prepaid Exp...

A: Retained earnings are surplus profits left to the company after paying dividends. Retained earnings ...

Q: Radison Enterprises sells a product for $57 per unit. The variable cost is $26 per unit, while fixed...

A: Break-even analysis is a technique widely used by the production department. It helps to determine t...

Q: 12. Income Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. ass...

A: Absorption costing is a total cost technique, where cost includes variable and fixed expenses. Varia...

Q: Use the following Adjusted Trial Balance. Adjusted Trial Balance Debit Credit Cash $16,500 Accounts ...

A: Click to see the answer

Q: The coke company sales around in the year of 2019 OMR 300,000. But unfortunately damaged broken coke...

A: This numerical has covered the concept of Net Profit Ratio.

Q: Appliances Inc. is preparing an aggregate production plan for washers for the next four months. The ...

A: Production plan: Production plan involves planning related to proper allocation of employees, resour...

Q: Sebastian purchases two pieces of equipment for $147,000. Appraisals of the equipment indicate that ...

A: Lump-sum purchase:   When the assets are purchased or bought in a lot in one transaction at a lump ...

Q: Horizontal analysis of income statement (What did I do wrong? Anyone know the correct answers to the...

A: Horizontal analysis is prepared to calculate the variance from previous year by showing increase/dec...

Q: 7. A business operated at 100% of capacity during its first month, with the following results: Sa...

A: Answer:   Option d.

Q: A manager uses regression to express sales as a function of advertising expenditures (X1), and per c...

A: option 4 is correct  The regression line fits the data used in the sample very well. There is a stro...

Q: Which of the following statements is true with respect to the degree of operating leverage (DOL)?   ...

A: Degree of Operating Leverage: It shows how much the operating income changes with respect to change ...

Q: Pharmos Incorporated is a Pharmaceutical Company which is considering investing in a new production ...

A: Click to see the answer

Q: Required information [The following information applies to the questions displayed below.]Sandra’s P...

A:   Opening  Purchased Sale Closing Date Units Total Units Rate Total Units Rate Total Units Total ...

Q: What is a major shortcoming of just using Income from Operations as a performance measure for Invest...

A: Click to see the answer

Q: 4. Below are the transactions for the month of February 2020 for Mrs Lamuna, a sole trader: Feb 1 St...

A: As posted multiple independent questions we are answering only first question kindly repost the unan...

Q: Reconstruct the company’s comparative balance sheet for 2013/2014 and compute and show the missing f...

A: Balance sheet: This statement shows the assets and liabilities held by a company on a particular dat...

Q: CVP analysis with multiple products assumes that sales will continue at the same mix of products, ex...

A: When there are multiple products, there is change in the product mix then the weighted average is be...

Q: Reviewing payroll records indicates that employee salaries that are due to be paid on January 3 incl...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Please answer with explanation thx

A: Break-even point: It is the point where a firm earns no profit. It is the point where the firm's rev...

Q: Michael Company purchased goods worth P7,500. Term: n/30, FOB Shipping point, Freight Prepaid. Entry...

A: FOB Shipping Point, Freight Prepaid means that that the buyer is responsible for the freight charge ...

Q: Love Co. sold merchandise to Kind Co. on account, P35,000, terms 2/15, net 45. The cost of the merch...

A: Cost of goods sold less return=Cost of goods sold-Return=P 24,500-P1,700=P 22,800

Q: The 2014 comparative balance sheet and 2014 income statement of Byfield Co Ltd, have just been distr...

A: Cash flow statement from indirect method is considered important. Reason: This is because accrual ac...