Question

Complete the table below for the missing amounts:

A B C

Number of units 2,064 units (d) 2,570 units

Sales price per unit \( 250 \) 125 $ (g)

Variable costs per unit (a) 50 4,528

Contribution margin per unit 125 (e) (h)

Total contribution margin (b) 1,567,500 (i)

Contribution margin ratio (c) (f) 20%

Short answer

Answer

1. (a) $125

2. (b) $258,000

3. (c) 50%

4. (d) 20,900

5. (e) $75

6. (f) 60%

7. (g) $5,660

8. (h) $1,132

9. (i) $2,909,240

Step-by-step solution

Calculation of sub-part (a),(b), and (c)

A

Number of units 2,064

Sales price per unit $250

Variable cost per unit (Sales price per unit-Contribution margin per unit) (a) $125 ($250-$125)

Contribution margin per unit $125

Total contribution margin (b) (2,064 x $125) (b) $258,000

Contribution margin ratio (c) ($125/250) (c) 50%

Calculation of sub-part (d),(e), and (f)

Number of units ($1,567,500/$75) (d) 20,900

Sales price per unit $125

Variable cost per unit $50

Contribution margin per unit (Sales price per unit- Variable cost) (e) $75

Total contribution margin 1,567,500

Contribution margin ratio ($75/$125) (f) 60%

Calculation of sub-part (g), (h), and (i)

Number of units 2,570

Sales price per unit ($4,528/(1-20%)) (g) $5,660

Variable cost per unit (a) $4,528

Contribution margin per unit (Sales price per unit- Variable

cost) ($5,660-$4,528) (h) $1,132

Total contribution margin (b) ($1,132 x 2,570) (i) $2,909240

Contribution margin ratio (c) ($1,132 / $5,660) 20%