Question

Check my work 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.) eBook 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: Hint Print (For all requirements, Loss amounts should be indicated by a minus sign.) Ferences

Answer 1

Solution:

a)

	Case 1	Case 2	Case 3	Case 4
Unit sold	8,400	13,900	20,500	4,000
Sales	218,400	219,900	451,000	123,200
variable expenses	117,600	136,500	205,000	79,200
Fixed expenses	92,000	176,000	81,000	82,000
net operating income(loss)	8,800	(92,000)	165,000	(38,000)
Contribution margin per unit	12	6	12	11

working:

	case 1	case 2	case 3	case 4
Unit sold	8,400	=(219,900 -136,500)/6	20,500	4,000
Sales	218,400	219,900	=205,000+165,000+81,000	123,200
Variable expenses	117,600	=219,900 - 176,000 +92,600	205,000	=(123,200 - 82,000 +38,000)
Fixed expenses	92,000	176,000	=(20,500*12)-165,000	82,000
Net operating income (loss)	=218,400 - 117,600 -92,000	-92,600	165,000	-38,000
Contribution margin per unit	=(218,400-117,600)/8,400	6	12	=(123,200 - 79.200)4000

b)

	case 1	case 2	case 3	case4
Sales	441,000	192,000	703,000,	309,000
Variable expenses	255,780	132,480	119,510	92,700
Fixed expenses	111,000	69,000	473,000	313,300
net operating income (loss)	74,220	(9,480)	110,490	(9,700)
Contrbution margin ratio(percentage)	42	31	83	70

Working:

	Case 1	Case2	case 3	case 4
Sales	441,000	192,000	=(473,000 + 110,490)/83%	309,000
variable expenses	441,000*58%	132,480	=703,000*17%	92,700
fixed expenses	=441,000 - 255,780 - 74,220	69,000	473,000	= 309,000-92,700+97,00
Net oprating income	74,220	=192,000-132,480-69,000	110,490	-9,700
Contrbution margin ratio	42	=(192,000 - 132,480)/192,000	83	=(309,000 - 92,700)/3-9,000