Answer:
the answer will be in the explanation
Step-by-step explanation:
a. The variable cost per unit is calculated by subtracting the unit contribution margin from the selling price per unit. In this case, the selling price per unit is $140 and the unit contribution margin is $. We can calculate the variable cost per unit as follows:
$140 - $ = Variable Cost per Unit
b. The unit contribution margin is calculated by subtracting the variable cost per unit from the selling price per unit. We can use the formula below to calculate the unit contribution margin:
Unit Contribution Margin = Selling Price per Unit - Variable Cost per Unit
c. The contribution margin ratio is calculated by dividing the contribution margin by net sales revenue. We can use the formula below to calculate the contribution margin ratio:
Contribution Margin Ratio = Contribution Margin / Net Sales Revenue
Given that Bluegill Company sells 14,900 units at $140 per unit, has fixed costs of $104,300 and income from operations of $938,700, we can calculate the following:
a. Variable cost per unit = $90
b. Unit contribution margin = $50
c. Contribution margin ratio = 35.71%
I hope this helps.