Sally Company sells 39,000 units at $16 per unit. Variable costs are $11.20 per unit, and fixed costs are $82,400. 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
Sally Company sells 39,000 units at $16 per unit. Variable costs are $11.20 per unit, and fixed costs are $82,400. 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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Sally Company sells 39,000 units at $16 per unit. Variable costs are $11.20 per unit, and fixed costs are $82,400.
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 | $ |
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