Accounting 2023 Business Finance

2023 1 In the last reporting period Helena s Heavenly Fixture Company recorded 100 000 units sold for the first time

(1) In the last reporting period, Helena’s Heavenly Fixture Company recorded 100,000 units sold for the first time in the history of the company. The price per unit was $89.99 and variable costs per unit at $36.39. Showing all work in the space provided, compute the contribution margin. Next, compute the fixed costs if the operating income is $4,020,000. (2) Geneva Bottled Water Co. is assembling a weighted average contribution margin chart to better analyze differences between sales on 36 oz. and the 20 oz. bottled water. The sales price per unit of the 36 oz. bottled water is $3.79 while the sales price per unit of the 20 oz. bottled water is $1.19. The contribution margin per unit for the 36 oz. bottle is $1.35 and the contribution margin of the 20 oz. bottle is $0.28. The 20 oz. bottle outsells the 36 oz. bottle by a 5:1 relationship. What is the weighted average contribution margin per unit on these two products?

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