How do you calculate the following sales price of 110 fixed cost 385500 expect to sell 11000 units next year with operating income of 125550 Need variable cost per unit and contribution margin ratio?

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Answer

1148675

2026-03-08 04:15

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Revenue (11000 * 110) 1210000

fixed Cost 385500

variable cost 698950 (balance figure)

Operating Income 125550

Variable cost per unit = 698950/11000

variable cost per unit = 63.54

Contribution margin ratio = (Sales - Variable cost) / Sales * 100

Contribution margin ratio = (1210000 - 698950 ) / 1210000

Contribution margin ratio = 0.42 or 42%

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