Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is...
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Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $136,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Volume Total Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit $ 100.00 544,000.00 $170,000.00 X Ratio 100 % 20 X % 25 % 680,000 170,000 (136,000) 34,000 $
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