The following information has been provided by Knauer Corporation:
$$\begin{array} { | l | r | }
\hline \text { Operating income } & \$ 320,000 \
\hline \text { Variable cost per unit } & \$ 220 \
\hline \text { Fixed costs } & \$ 800,000 \
\hline \text { Units sold } & 16,000 \
\hline
\end{array}$$ Which of the following statements is correct?
A) The unit breakeven point can't be determined given the information provided.
B) The sales price per unit was $290.00.
C) The margin of safety can't be determined given the information provided.
D) The contribution margin per unit was $50.00.

Question

The following information has been provided by Knauer Corporation:
$$\begin{array} { | l | r | } 
\hline \text { Operating income } & \$ 320,000 \
\hline \text { Variable cost per unit } & \$ 220 \
\hline \text { Fixed costs } & \$ 800,000 \
\hline \text { Units sold } & 16,000 \
\hline
\end{array}$$ Which of the following statements is correct?
A) The unit breakeven point can't be determined given the information provided.
B) The sales price per unit was $290.00.
C) The margin of safety can't be determined given the information provided.
D) The contribution margin per unit was $50.00.

Quizplus · Accepted Answer

The sales price per unit can be calculated using the formula: Sales = (Operating Income + Fixed Costs + (Variable Cost per Unit * Units Sold)) / Units Sold. Solving this gives a sales price of $290 per unit.

The Following Information Has Been Provided by Knauer Corporation Which of the Following Statements Is Correct? A) the Unit

The Following Information Has Been Provided by Knauer Corporation Which of the Following Statements Is Correct?
A) the Unit