Question

Below is the information on three independent companies:

	Zissou	Gustave	Tenenbaum
Sales	$25,000
Total variable cost	$10,000	$18,000	$12,750
Total contribution margin	$15,000	$3,000
Fixed cost		$4,000
Profit (loss)	$8,000	-$1,000	$975
Units sold		1,500	215
Price per unit	$5.00		$140.00
Variable cost per unit		$12.00
Contribution Margin per unit		$2.00

Please fill in the missing boxes.

Answer 1

	Zissou	Gustave	Tenenbaum
Sales	$25,000	$21,000	$30,100
Total Variable cost	$10,000	$18,000	$12,750
Total contribution margin	$15,000	$3,000	$17,350
Fixed cost	$7,000	$4,000	$16,375
Profit (Loss)	$8,000	($1,000)	$975
Units sold	5000	1500	215
Price per unit	$5.00	$14.00	$140.00
Variable cost per unit	$2.00	$12.00	$59.30
Contribution margin per unit	$3.00	$2.00	$80.70

Note: All values are rounde upto 2 decimal places as nothing is mentioned in the question.

Explanation:

To solve the above question the following equations have been rearranged accordingly:-

1) sales - total variable cost = total contribution margin

2) total contribution margin - fixed cost = profit/(loss)

3) units sold = sales/price per unit or units sold = total variable cost/variable cost per unit

4) contribution margin per unit = price per unit - variable cost per unit