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

question 91

Short Answer

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

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Definitions:

Financial Statements

Documents that present a business's financial performance and position, typically including the balance sheet, income statement, and cash flow statement.

Investing Activities

These are transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Financing Activities

Transactions related to raising capital and repaying investors, impacting the equity and long-term debt of an entity.

Common Stock

A type of security that denotes ownership in a corporation and represents a claim on part of the corporation's profits or losses.