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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: Case #1 Case #2 Case #3 Case #4 Unit sold 15,000 15,000 4,000 Sales $ 130.000 $ 300,000 180,000 $ 90,000 60,000 40,000 40,000 140,000 Variable expenses Fixed expenses Operating income (loss) Contribution margin per unit $ 34,000 $ 55,000 $ (92,000) $ 10 $ 11 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 #3 Case #4 Sales $ 500,000 380,000 Case #1 Case #2 $ 550,000 $ 425,000 250,750 105,000 $ 6,200 20% Variable expenses Fixed expenses Operating income (loss) Average contribution margin (percentage) 120,000 $ (4,000) 18,000 $ 50%Step by Step Solution
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