Question

Please answer the following:

Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing data in each independent case

	Case A	Case B	Case C	Case D
Unit Sales	1,000	800	Answer	Answer
Sales revenue	$20,000	Answer	Answer	$60,000
Variable cost per unit	$10	$2	$13	Answer
Contribution margin	Answer	$800	Answer	Answer
Fixed Costs	$7,500	Answer	$80,000	Answer
Net income	Answer	$700	Answer	Answer
Unit contribution margin	Answer	Answer	Answer	$19
Break-even point (units)	Answer	Answer	4,000	2,000
Margin of safety (units)	Answer	Answer	400	1,000

Answer 1

			A	B	C	D
Unit Sales			1000	800	4400	3000
Sales revenue			$ 20,000.00	$ 2,400.00	$ 145,200.00	$ 60,000.00
Variable cost per unit			$         10.00	$        2.00	$           13.00	$           1.00
Contribution margin			$ 10,000.00	$    800.00	$   88,000.00	$ 57,000.00
Fixed Costs			$   7,500.00	$    100.00	$   80,000.00	$ 38,000.00
Net income			$   2,500.00	$    700.00	$     8,000.00	$ 19,000.00
Unit contribution margin			$         10.00	$        1.00	$           20.00	$        19.00
Break-even point (units)			750	100	4000	2,000
Margin of safety (units)			250	700	400	1000

2 с 10 800 =(C3*C5)+C6 =D10+D11 =(D3*D5)+D6 13 3 Unit Sales 1000 4 Sales revenue 20000 5 Variable cost per unit 10 6 Contribution margin =B4-(B3*B5) 7 Fixed Costs 7500 8 Net income =B6-B7 9 Unit contribution margin =B6/B3 10 Break-even point (units) =B7/B9 11 Margin of safety (units) =B3-B10 800 =C6-C8 700 =C6/C3 =C7/09 =C3-C10 =D3*D9 80000 =D6-07 =D7/D10 4000 400 =E10+E11 60000 =(E4-E6)/E3 =E3*E9 =E10*E9 =E6-E7 19 2000 1000

General Formulas
Break Even Point =		Fixed Cost / Contribution Margin p.u
Margin of safety =		Actual Sales - Break Even Point
Cont. Margin =		Sales - Variable Costs
Cont. Margin p.u =		Contribution Margin / Unit sales