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 #1 Case #2 Case #3 Case #4 Unit sold 8,6001 19,000 4,600 Sales 275,200 $ 297,000 $ 115,000 Variable expenses 120.400 247.000 Fixed expenses 88,000 180,000 R3000 Net operating income (los) $ 72.000 $ 43.000 (37.000) Contribution margin per unit 8S Required A Required B >

Answer 1

Answer

--Requirement asked: Requirement A

	Case #1	Case #2	Case #3	Case #4
Units sold	8,600	13,500	19,000	4,600
Sales	$275,200	$297,000	$380,000	$115,000
variable expenses	$120,400	$189,000	$247,000	$69,000
Fixed expenses	$88,000	$180,000	$90,000	$83,000
Net Operating income (loss)	$66,800	($72,000)	$43,000	($37,000)
Contribution margin per unit	$18.00	$8.00	$7.00	$10.00

--Working calculation

	Case #1	Case #2	Case #3	Case #4
Units sold	8600	=+(297000-189000)/8	19000	4600
Sales	275200	297000	=247000+(19000*7)	115000
variable expenses	120400	=297000-180000-(-72000)	247000	=115000-83000-(-37000)
Fixed expenses	88000	180000	=+(19000*7)-43000	83000
Net Operating income (loss)	=275200-120400-88000	-72000	43000	-37000
Contribution margin per unit	=+(275200-120400)/8600	8	7	=+(115000-69000)/4600