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 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: (For all requirements, Loss amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: Case 11 Case 12 Case 13 Case 4

Answer 1

Solution for B:
	Case 1	Case 2	Case 3	Case 4
Sales	440000	206000	709000	309000
Less: Variable Expenses	277200	133900	148890	98880
Contribution margin	162800	72100	560110	210120
Less: Fixed Expenses	51800	68000	469000	226000
Net operating income/(Loss)	111000	4100	91110	-15880
Contribution margin ratio	37%	33%	79%	68%
Formulae used in each case:
1	Contribution	Contribution	Contribution	Contribution
	=Sales x CM ratio	=Sales - Variable Exp.	=Fixed exp.+Net operating income	=Sales - Variable Exp.
2	Variable Expenses	Net operating income	Sales	Fixed Expenses
	=Sales-contribution	=Contribution-Fixed cost	=Contribution/CM ratio	=Contribution-Net operating loss
3		CM ratio	Variable Expenses	CM Ratio
		=CM / Sales	=Sales-Contribution	=CM / Sales