Question

File Edit View History Bookmarks Window Help Tue- w etheducation.com 0 0 ney Consoring 20 dec ITO 2000 ALL Connect Apply Concerts de Part 2 M2: Apply Concepts with Videos Part 2 Help Save & Submit Check my work Exercise 2-11 (Static) Missing Data; Basic CVP Concepts [LO2-1, LO2-9) Fill in the missing amounts in each of the eight case stations 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 Complete this question by entering your answers in the tabs below. Reguled A Assume that only one product is being sold in each of the four following case stations: Case Case a Case Casa 15.000 10 000 $ 180,000 $ 100.000 $ 120.000 70.000 50.000 32.000 S 103 < Prev 3 4 Next > MacBook Pro i 2 Ô 8

Answer 1

1		Case #1	Case #2	Case #3	Case #4
	Units Sold	15000.00	4000.00	10000.00	6000.00
	Sales	$ 180,000.00	$ 100,000.00	$ 200,000.00	$ 300,000.00
	Variable Expense	$ 120,000.00	$    60,000.00	$    70,000.00	$ 210,000.00
	Fixed Expense	$    60,000.00	$    32,000.00	$ 118,000.00	$ 100,000.00
	Net operating Income/ (loss)	$                   -	$      8,000.00	$    12,000.00	$ (10,000.00)
	Contribution margin per unit	$               4.00	$            10.00	$            13.00	$            15.00
	Case#1
	1. Net operating Income/ (loss)	= (Sales -Variable Expense -Fixed Expense)
	2. Contribution margin per unit	= (Sales -Variable Expense)/Units Sold
	Case #2
	3. Variable Expense	= (Sales -Fixed Expense- Net Operating Income)
	4. Units sold	= (Sales -Variable Expense)/Contribution margin per unit
	Case #3
	5. Fixed Expense	= (Sales -Variable Expense- Net Operating Income)
	6. Sales	= Variable Expense+(Contribution margin per unit*Units Sold)
	Case #4
	7. Variable Expense	= (Sales -Fixed Expense+ Net Operating loss)
	8. Contribution margin per unit	= (Sales -Variable Expense)/Units Sold
2		Case #1	Case #2	Case #3	Case #4
	Sales	$ 500,000.00	$ 400,000.00	$ 250,000.00	$ 600,000.00
	Variable Expense	$ 400,000.00	$ 260,000.00	$ 100,000.00	$ 420,000.00
	Fixed Expense	$    93,000.00	$ 100,000.00	$ 130,000.00	$ 185,000.00
	Net operating Income/ (loss)	$      7,000.00	$    40,000.00	$    20,000.00	$    (5,000.00)
	Contribution margin ratio	20%	35%	60%	30%
	Case#1
	1. Variable Expense	= Sales*(100%- Contribution margin ratio)
	2. Fixed Expense	= (Sales -Variable Expense- Net Operating Income)
	Case #2
	3. Net operating Income/ (loss)	= (Sales -Variable Expense -Fixed Expense)
	4. Contribution margin ratio	= (Sales -Variable Expense)*100/Sales
	Case #3
	5. Sales	= (Fixed Expense+Net operating Income/(loss))/Contribution margin ratio
	6. Variable Expense	= Sales*(100%- Contribution margin ratio)
	Case #4
	7. Fixed Expense	= (Sales -Variable Expense+ Net Operating Loss)
	8. Contribution margin ratio	= (Sales -Variable Expense)*100/Sales