Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed costs are $190,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations

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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Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed costs are $190,700.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
a. Contribution margin ratio (Enter as a whole number.)
%
b. Unit contribution margin (Round to the nearest cent.)
per unit
c. Income from operations
Transcribed Image Text:Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed costs are $190,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
Currently, the unit selling price of a product is $380, the unit variable cost is $310, and the total fixed costs are $1,078,000. A proposal is being evaluated to increase the unit selling price to $420.
a. Compute the current break-even sales (units).
units
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $420, and all costs remain constant.
units
Transcribed Image Text:Currently, the unit selling price of a product is $380, the unit variable cost is $310, and the total fixed costs are $1,078,000. A proposal is being evaluated to increase the unit selling price to $420. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $420, and all costs remain constant. units
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