# Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. 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 a variable cost ratio of 0.56. The fixed cost is$103,840 and 23,600 units are sold at break-even. What is the price? What is the variable cost per unit? The contribution margin per unit?

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

### Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

#### Solutions

Chapter
Section
Chapter 7, Problem 36E
Textbook Problem

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