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.) 

Answer 1

Sales Varaibles Expense Fixed Expense Net Operating income (loss) Contribution Margin Ratio CASE 1 CASE 2 CASE 3 CASE 4 451000 201000 703000 290000 266090 136680 1195101 81200 111000 69000 467000228000 73910 -4680 116490 -19200 41% 32% 83% 72% Units Sold Sales Variabble Expenses Fixed Expenses Net Operating income (loss) Contribution Margin per unit CASE 1 CASE 2 CASE 3 CASE 4 89001 13000 20700 4800 231400 312000 517500 158400 142400 130000 227700 76800 84000 172000 77800 89000 5000 10000 212000 -7400 17 107 141

A B S.no Case Question 1 A Variable Expenses Fixed Expense Net operating income Contribution Margin Ratio Sales Variable Expenses Fixed Expense 18 D Contribution Margin Ratio Working Notes Formula (sales*(1-CM Ratio) (Contribution Margin-Net operating Income) (Sales - Total Expenses) (Sale - VC)/Sales (FC+Net operating income) /CM ratio (sales)-(FC+Net operating income) (Sales-Varaibel Cost +Net opearating Loss) (Sales - Variable Cost)/ Sales answer 266090 111000 -4680 32% | 703000 119510 228000 72% c. D

Case Calculations Question Formula 1 Net Operating income (loss) (Sales - Variable Cost -Fixed Cost) 1 Contribution Margin per uni (Sales - Variable Cost)/Units sold 2 Units Sold | Sales - Varaible Cost)/CM ppre unit 2 Variabble Expenses (Sales - Fixed Cost-operating Income) 3 Sales (Variable Cost +Fised cost+operating income) 3 Fixed Expenses (Units *CM Per unit)-Operating income 4 Variabble Expenses (Sales +operating loss-Fixed cost 4 Contribution Margin per uni(Sales - Variable Cost)/Units sold Answer 5000 10 13000 130000 517500 77800 76800 17