Contribution Margin Sally Company sells 20,000 units at $25 per unit. Variable costs are $20.50 per unit, and fixed.costs are $28,800. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit C. Operating income %24

Contribution Margin Sally Company sells 20,000 units at $25 per unit. Variable costs are $20.50 per unit, and fixed.costs are $28,800. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit C. Operating income %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. Model C-V-UA company has the following data about its costs: Variable unit cost:Raw material $2.3Labor $1.2Variable GIF $0.6Fixed monthly costs:GIF $7,500 Depreciation $4,500Salaries $ 36,500Rent $3,700Utilities $ 900 The unit sale price is $12 and sales of 10,000 units are planned.Calculate the safety margin in percentage: __________________With the above data, it calculates the percentage contribution margin.
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pPease need answer for all requirements with full working. Please double underline answer all requirements or skip/leave for other experts . Please do not waste question and time by giving incomplete or incorrect answer. Answer in text. Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: A) Use the equation method. B) Use the contribution margin per unit approach. C) Use the contribution margin ratio approach. D) Prepare a contribution margin income statement for the break-even sales volume.
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