Reference no: EM132958242

Questions -

Q1. Calculate the variable cost per unit when a unit is sold for $100 each and the contribution margin per unit is $40.

Q2. Calculate the contribution margin ratio when a unit sells for $50 each and it costs $35 to make one.

Q3. Patrick Company sells Kevlar cooking mitts for $75 per pair. He had the following business results last year. Assuming costs are stable, how many pairs does he have to sell next year to break even?

-Sales $750,000

-Variable 250,000

-Contribution Margin 500,000

-Fixed Costs 850,000

-Net income (350,000)

Q4. Kayla Company sells high functioning blenders $450 each. She sold 8,000 blenders last year and had total variable costs of $1,500,000. Fixed costs were $3,000,000. Assuming costs are stable, how many blenders does she have to sell next year to break even?

Q5. Calculate the variable cost per unit when the unit is sold for $150 each and the contribution margin ratio is 35%.