[Fisher321]

I need help with the these three problems. They are the only three I don't understand from my homework. :confused:

1) During June, ABC Corporation produced 12,000 units and sold them for $20 per unit. Total fixed costs for the period were $154,000, and the operating profit was $26,000. The variable cost per unit for June was:
a. $4.50
b. $5.00
c. $6.00
d. $7.17


2) If total sales are $200,000, total variable costs are $60,000, and total fixed costs are $80,000, the contribution margin is:
a. $200,000
b. $80,000
c. $120,000
d. $140,000

3) Assume that Gronen Company has total variable costs of $90,000 when 30,000 units are sold. If 50,000 units were sold, total variable costs would be:
a. $100,000
b. $120,000
c. $130,000
d. $150,000

[CaptainForest]

1)
Note: This question is done from starting at the very bottom and working your way up.

Sales (given) 12,000 x 20 = 240,000
VC = Sales – CM = 240,000 – 180,000 = 60,000
CM = 154,000 + 26,000 = 180,000
FC 154,000
Operating Profit 26,000

Therefore, VC totalled $60,000 for 12,000 units, or $5 per unit (60,000 / 12,000)

b. $5.00


2)
CM = Sales – VC = 200,000 – 60,000 = 140,000

d. $140,000


3) I already answered this on your other post.

VC 90,000 / 30,000 units = $3 of VC per unit

$3 x 50,000 = $150,000

d. $150,000