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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

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