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: Unit sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit Case #1 Case #2 Case #3 Case #4 9,700 20,000 4,100 $ 291,000 $ 367,200 $ 127,100 126,100 240,000 98,000 179,000 82,000 $ 52,200 $ 131,000 $ (28,700) $ 17 $ 11

Answer 1

	Case #1	Case #2	Case #3	Case #4
Unit Sold	9,700	13,600	20,000	4,100
Sales	291,000	367,200	460,000	127,100
Variable Expenses	126,100	136,000	240,000	73,800
Fixed Expenses	98,000	179,000	89,000	82,000
Net Operating Income	66,900	52,200	131,000	(28,700)
Contribution margin per unit	17.00	17	11	13.00
	Case #1	Case #2	Case #3	Case #4
Sales	458,000	203,000	695,000	292,000
Variable Expenses	265,640	121,800	145,950	84,680
Fixed Expenses	118,000	69,000	467,000	233,000
Net Operating Income	74,360	12,200	82,050	(25,680)
Contribution margin ratio	42.00%	40.00%	79.00%	71.00%