Question

Following are data from 4 separate companies. Supply the missing data in each independent case.

Cost-Volume-Profit Relations: Missing Data 

Following are data from 4 separate companies. Supply the missing data in each independent case.


Case ACase BCase CCase D
Unit Sales1,000800

Sales revenue$20,000$$60000
Variable cost per unit$10$1$12$
Contribution margin$$800$$
Fixed Costs$7,000$$80,000$
Net income$$500$$
Unit contribution margin$$$$15
Break-even point (units)

4,0002,000
Margin of safety (units)

3001,000


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Answer #1

Calculate following

A B C D
Unit sales 1000 800 4300 3000
Sales revenue 20000 1600 137600 60000
Variable cost per unit 10 1 12 5
Contribution margin 10000 800 86000 45000
Fixed cost 7000 300 80000 30000
Net income 3000 500 6000 15000
Unit contribution margin 10 1 20 15
Break even units 700 300 4000 2000
Margin of safety units 300 500 300 1000
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