Q 1 part a.

	Sales	Total Variable Costs	Total Fixed Costs	Total Costs	Operating Income (Loss)	CM%
1.	$250,000.00	$145,000.00	$50,000.00	$195,000.00	$55,000.00
2..		$150,000.00	$140,000.00	$290,000.00	$110,000.00	62.50%

Question 1 part b.

complete the following chart in which SP = selling price per unit, VC = variable cost per unit, CM Unit = contribution margin per unit and CM Total = total contribution margin.

	SP	VC	CM Unit	Units Sold	CM Total	Total Fixed Costs	Operating Income (Loss)
3.		$35.00	$10.00	10000	$100,000.00	$45,000.00	$55,000.00
4.	$32.00	$12.00	$20.00	20,000	$400,000.00		($15,000.00)