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

1.CASE#1

Units sold	8100
Sales	$243000
(-) variable cost	($97200)
Contribution	$145800
(-) fixed cost	($94000)
NET OPERATING INCOME	$51800
CONTRIBUTION MARGIN PER UNIT = CONTRIBUTION AMOUNT/UNIT SOLD= 145800/8100	$18

2.CASE#2

units sold (note)3	13500
Sales	$337500
(-) variable cost (note) 2	($148500)
Contribution (note)1	$189000
(-) fixed cost	($164000)
Operating income	$25000
Contribution margin per unit	$14

note 1: contribution= fixed cost+operating income

   =$164000+$25000=$189000

Note 2 variable cost= sales -contribution

   =$337500-$189000=$148500

Note 3: unit sold=contribution amount/contribution margin per unit

   =$189000/$14= 13500 units

3.case#3

Unit sold	19000
sales (note3)	$399000
(-) VARIABLE COST	($266000)
Contribution(note 1)	$133000
(-) fixed cost(note2)	($88000)
Operating profit	$45000
Contribution margin per unit	$7

NOTE 1

CONTRIBUTION AMOUNT=UNIT SOLD× CONTRIBUTION MARGIN PER UNIT

   = 19000×$7=$133000

Note 2.

   FIXED COST=contribution - operating profit

   =$133000 - $45000= $88000

Note 3. Sales = variable cost + contribution

   =$266000+$133000=$399000

4.case#4

  

Unit sold	4700
Sales	$150400
(-) variable cost (note 2)	(79900)
contribution (note 1)	$70500
(-) fixed cost	($91000)
Operating loss	($20500)
contribution margin per unit(note3)	$15

note 1. Contribution= fixed cost+operating profit/loss

   =$91000+($20500)= $70500

Note 2: variable cost= sales-contribution

   =$150400-$70500

   = $79900

Note3: contribution margin per unit= contribution amount/unit sold

= $70500/4700= $15

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