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: Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: (Loss amounts should be indicated by a minus sign.) Case #1 Case #2 Case #3 Case #4 Sales $ 453,000 $ 203,000 $ 310,000 Variable expenses 140,070 80,600 Fbced expenses 54,000 466.000 Net operating income (loss) $ 67,730 $ 115 280 $ 1,400 Contribution margin ratio (percent) 41 % % 84 % % < Required A ud

Answer 1

B)	Case #1	Case #2	Case #3	Case #4
Sales	$453,000	$203,000	$692,000	$310,000
Variable expenses	$267,270	$140,070	$110,720	$80,600
Fixed expenses	$118,000	$54,000	$466,000	$228,000
Net operating income (loss)	$67,730	$8,930	$115,280	$1,400
Contribution margin ratio (percent)	41%	31%	84%	74%

Working notes:

Case #1
Variable cost to sales ratio (100% - 41%)	59%
Variable expenses ($453,000*59/100)	$267,270
Contribution margin ratio	41%
Contribution margin ($453,000*41/100)	$185,730
Less: Net operating income (Loss)	($67,730)
Fixed expenses	$118,000
Case #2
Sales	$203,000
Less: Variable expenses	($140,070)
Contribution margin	$62,930
Less: Fixed expenses	($54,000)
Net operating income (loss)	$8,930
Contribution margin ratio ($62,930/$203,000*100)	31%
Case #3
Fixed expenses	$466,000
Add: Net operating income (Loss)	$115,280
Contribution margin	$581,280
Sales ($581,280*100/84)	$692,000
Variable expenses ($692,000 - $581,280)	$110,720
Case #4
Sales	$310,000
Less: Variable expenses	($80,600)
Contribution margin	$229,400
Less: Net operating income (Loss)	($1,400)
Fixed Expenses	$228,000
Contribution margin ratio ($229,400/$310,000*100)	74%