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:

a. Assume that only one product is being sold in each of the four following case situations: Case #2 Case #3 19,600 Case #4 4,500 148,500 $ Case #1 8,400 226,800 109,200 81,000 $ 343,200 $ Unit sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit 215,600 1 66,000 (8,700) 11 74,000 2,500 $ $ $ $ 123,600 $ 111 b. Assume that more than one product is being sold in each of the four following case situations: Case #3 Case #1 $ 444,000 Case #2 $ 208,000 143,520 65,000 Case #4 $ 301,000 93,310 Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin ratio (percent) 414 $ 55,160 $ 472,000 115,160 84% $ (15,310)

Answer 1

148500 Units Sold Sales Variabble Expenses Fixed Expenses Net Operating income (loss) Contribution Margin per unit CASE 1 CASE 2 CASE 3 CASE 4 8400 14300 19600 4500 226800 343200 431200 109200 185900 215600 72000 81000 166000 92000 74000 36600 -8700 123600 2500 14 11 11 17

Case Calculations Question Formula 1 Net Operating income (loss (Sales - Variable Cost - Fixed Cost) 1 Contribution Margin per un (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 ur (Sales - Variable Cost)/Units sold Answer 36600 14 14300 185900 431200 92000 72000 17

Sales Varaibles Expense Fixed Expense Net Operating income (loss) Contribution Margin Ratio CASE 1 CASE 2 CASE 3 CASE 4 4440001 208000 699000301000 2708401 1435201 111840 933101 118000 65000| 472000 223000 55160 -520 115160 -15310 84% 69% 39% 31%

Working Notes S.no Case Question Formula 1 A Variable Expenses (sales*(1-CM Ratio) 2 A Fixed Expense (Contribution Margin-Net operating Income) 3 B Net operating income Sales - Total Expenses) 4 B Contribution Margin Ratio (Sale - VC)/Sales 5 C Sales (FC+Net operating income) /CM ratio 6 C Variable Expenses (sales)-(FC+Net operating income) Fixed Expense (Sales-Varaibel Cost +Net opearating Loss) ID Contribution Margin Ratio (Sales - Variable Cost)/ Sales answer 270840 118000 -520 31% 699000 111840 223000 69% ID