Question
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. ( Hint: One way to
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.
(Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)
Required:
a. Assume that only one product is being sold in each of the four following case situations:
b. Assume that more than one product is being sold in each of the four following case situations:
(For all requirements, Loss amounts should be indicated by a minus sign.)
Required A
Case #1 | Case #2 | Case #3 | Case #4 | |
Units Sold | 8,500 | 20,900 | 4,600 | |
Sales | $ 238,000 | $ 369,600 | $ 124,200 | |
Variable expenses | 144,500 | 167,200 | ||
Fixed expenses | 99,000 | 175,000 | 82,000 | |
Net Operating Income (loss) | $ 62,600 | $177,700 | $ (45,200) | |
Contribution margin per unit | $ 18 | $ 13 |
Required B:
Case #1 | Case #2 | Case #3 | Case #4 | |||||
Sales | $459,000 | $198,000 | $305,000 | |||||
Variable expenses | 134,640 | 88,450 | ||||||
Fixed expenses | 55,000 | 467,000 | ||||||
Net operating income (loss) | $ 72,600 | $93,000 | $ (9,450) | |||||
Contribution margin ratio (percent) | 40 | % | % | 80 | % | % |
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