Question

Exercise 5-11 Missing Data; Basic CVP Concepts [LO5-1, LO5-9) 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 #2 6,206 391,500 Case 3 20,300 Unit sold Case 84 5,500 $ 137,500 $ Case 1 8,300 $ 249,000 141,100 81,000 $ 25,900 $ 13 243,600 Variable expenses Fixed expenses Net operating income (los) Contribution margin per unit 79.000 176,000 70,500 17 139,300 $ $ S (46,000) $ S Recured >

Answer 1

Requirement 1 $ $ $ Units Sold Sales Variable expenses Fixed expenses Net opearting income (loss) Contribution margin per Unit Case #1 8,300 2,49,000 1,41,100 81,000 26,900 13 Case #2 6,206 3,91,500 1,45,000 1,76,000 70,500 17 Case #3 20,300 4,66,900 $ 2,43,600 85,000 1,38,300 $ 11 $ Case #4 5,500 1,37,500 1,04,500 79,000 46,000 $ $ $ $ $ Explanation:- Case #1 Net opearting income (loss) = Sales - Variable Expenses - Fixed Expenses = $249,000 - 141,100 - 81,000 $ 26,900 Contribution margin per Unit = (Sales - Variable Expenses) Units Sold ($249,000 - 141,100) 8,300 $ 13 Case #2 Net opearting income (loss) = Sales - Variable Expenses - Fixed Expenses $70,500 = $391,500 - Variable Expenses - 176,000 Variable Expenses = $391,500 - 176,000 - 70,500 $ 1,45,000

Case #3 Contribution margin per Unit = $11 = $11 X 20,300 = Sales = (Sales - Variable Expenses) Units Sold - (Sales - $243,600 20,300 (Sales - $243,600 ($11 X 20,300) + $243,600 $ 4,66,900 Fixed Expense = Sales - Variable Expense - Net Operating income (loss) $466,900 - 243,600 - 138,300 $ 85,000 Case #4 Variable Expense = Sales - Fixed Expense - Net Operating income (loss) $137,500 - 79,000 - (-46,000) $ 1,04,500

Requirement 2 $ $ $ $ Sales Variable expenses Fixed expenses Net opearting income (loss) Contribution margin ratio (Percent) Case #1 4,49,000 2,78,380 1,16,000 54,620 38% Case #2 2,00,000 1,36,000 61,000 3,000 32% Case #3 7,00,000 1,68,000 4,70,000 62,000 76% Case #4 3,05,000 97,600 2,19,000 -11,600 68% $ $ $ $ Explanation:- Case #1 Contribution margin ratio (Percent) = (Sales - Variable Expenses) Sales 38% = ($449,000 - Variable Expense) $449,000 Variable Expense = $449,000 - ($449,000 X 38%) $ 2,78,380 Fixed Expense = Sales - Variable Expense - Net Operating income (loss) = $449,000 - 278,380 + 54,620 = $ 1,16,000 Case #2 Net opearting income (loss) = Sales - Variable Expenses - Fixed Expenses = $200,000 - 136,000 - 61,000 = $ 3,000 Contribution margin ratio (Percent) = (Sales - Variable Expenses) Sales ($200,000 - 136,000 2,00,000 32%

Case #3 Sales = Fixed Expenses + Net opearting income Contribution margin ratio $470,000 + 62,000 76% $ 7,00,000 Variable Expense = Sales - Fixed Expense - Net Operating income (loss) $700,000 - 470,000 - 62,000 $ 1,68,000 Case #4 Fixed Expense = Sales - Variable Expense - Net Operating income (loss) = $305,000 - 97,600 - (-11,600) = $ 2,19,000 Contribution margin ratio (Percent) = (Sales - Variable Expenses) Sales ($305,000 - 97,600) 305,000 68%