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Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each

Complete this question by entering your answers in the tabs below.

  • Required A
  • Required B

Assume that only one product is being sold in each of the four following case situations:

Case #1 Case #2 Case #3 Case #4
Unit sold 15,000 10,000 6,000
Sales $180,000 $100,000 $300,000
Variable expenses 120,000 70,000
Fixed expenses 50,000 32,000 100,000
Net operating income (loss) $8,000 $12,000 $(10,000)
Contribution margin per unit $10 $13

  • Required B

Assume that more than one product is being sold in each of the four following case situations:

Case #1 Case #2 Case #3 Case #4
Sales $500,000 $400,000 $600,000
Variable expenses 260,000 420,000
Fixed expenses 100,000 130,000
Net operating income (loss) $7,000 $20,000 $(5,000)
Contribution margin ratio (percent) 20 % % 60 % %

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