Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of experienced professionals. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Harry Company sells 38,000 units at $37 per unit. Variable costs are $30.71 per unit, and fixed costs are $136,200. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income. a. Contribution margin ratio (Enter as a whole number.) fill in the blank 1 % b. Unit contribution margin (Round to the nearest cent.) $fill in the blank 2 per unit c. Operating income $fill in the blank 3

Sagot :

facundobuzzetti

Answer:

Results are below.

Explanation:

First, we will determine the unitary contribution margin:

Unitary contribution margin= selling price - unitary variable cost

Unitary contribution margin= 37 - 30.71

Unitary contribution margin= $6.29

Now, the contribution margin ratio:

contribution margin ratio= Unitary contribution margin / selling price

contribution margin ratio= 6.29 / 37

contribution margin ratio= 0.17

Finally, the operating income:

Operating income= total contribution margin - fixed costs

Operating income= 38,000*6.29 - 136,200

Operating income= $102,820

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.