Question

Exercise 5-11 Missing Data; Basic CVP Concepts [LO5-1, LO5-9) 10 points Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way t the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and th compute the missing items.) 02:04:50 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: Skipped (For all requirements, Loss amounts should be indicated by a minus sign.) eBook Complete this question by entering your answers in the tabs below. Hint Required A Required B Assume that only one product is being sold in each of the four following case situations: Print Case #2 Case #3 20,600 Case #4 4,300 137,600 References Case #1 9,500 $ 247,000 114,000 93,000 $ 384,800 $ Unit sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit 267,800 165,000 12,600 12 74,000 (18,100) $ $ $ $ $ 147,600 11 Required A Required B

Answer 1

a)				Case#1	Case#2	Case#3	Case#4
	Unit sold			9,500	14,800	20,600	4,300
	Sales			247,000	384,800	494,400	137,600
	Variable expense			114,000	207,200	267,800	81,700
	Fixed expense			93,000	165,000	79,000	74,000
	Net operating income(loss)			40,000	12,600	147,600	-18,100
	contribution margin per unit			14	12	11	13
		Contribution = sales - variable expenses
		Sales - variable expense - fixed expense = net operating income
		Contribution margin per unit = contribution/units sold
b)				Case#1	Case#2	Case#3	Case#4
	Sales			445,000	195,000	698,000	310,000
	Variable expense			289,250	120,900	125,640	89,900
	Fixed expense			112,000	65,000	471,000	218,000
	Net operating income(loss)			43,750	9,100	101,360	2,100
	Average contribution margin ratio			35%	38%	82%	71%
		contribution margin ratio= contribution /sales
		sales = 100%
		Variable + contribution % = 100% sales
		hence when contribution is 35% , variable expense ratio will be 65% of sales