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 following four case situations:
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b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.)
Case #1 | Case #2 | Case #3 | Case #4 | |
Sales | $400,000 | $420,000 | $500,000 | |
Variable expenses | 252,000 | 360,000 | ||
Fixed expenses | 105,000 | 100,000 | ||
Operating income (loss) | $6,600 | $20,000 | $(4,200) | |
Average contribution margin (percentage) | 30% | 60% |
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