Bluegill Company Sells 45,000 Units at $18 Per Unit

question 14

Essay

Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and operating income is $298,000. Determine the (a) variable cost per unit, (b) unit contribution margin, and (c) contribution margin ratio.

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Definitions:

Certified Check

A check verified by a bank, guaranteeing that the signer has sufficient funds in their account to cover the check's amount at the time of certification.

Stop-payment Order

A request made to a bank instructing it not to process a payment on a check or transaction that has been issued but not yet cashed.

Wrongful Payment

A payment made in error, either due to fraud, administrative error, or mistaken identity, which may require recovery.

Liable

Liable means being legally responsible or obligated to compensate for harm, damages, or loss resulting from one's actions or negligence.