Question

Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate companies. Supply the missing data in each independent case. • Round unit contribution margin answers to two decimal places. • Use rounded unit contribution margin answers for subsequent computations. • Round UP break-even point units. Case D Case C ох 0 x Case A 2,500 $80,000 $20 Case B 1,600 0 X $ $2 $1,600 $ OX $240,000 0 X . $ 0 x Unit Sales Sales revenue Variable cost per unit Contribution margin Fixed Costs Net income Unit contribution margin Break-even point (units) Margin of safety (units) $24 $ 0 X $ $164,000 $ 0 X $ 0 X OX $14,000 $ ох 0 x $ OX $900 $ 0 x $ 0 x 8,000 0 X $30 4,000 2,000 0 X 0 X OX 0 X 600

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Answer 1

А B с D E חד 1 2 2 3 Supply the missing data in each independent case? Answer: 5 6 ar 9 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Particulars Case A Case B Case C Case D A. Unit sales 2,500.00 1,600.00 8,600.00 6,000.00 B. Sales revenue $ 80,000.00 $4,800.00 $382,700.00 $ 240,000.00 C. Variable cost per unit $ 20.00 $ 2.00 $ 24.00 $ 10.00 D. Contribution margin $ 30,000.00 $ 1,600.00 $ 176,300.00 $ 180,000.00 E. Fixed costs $ 14,000.00 $ 700.00 $164,000.00 $ 120,000.00 F. Net income $ 16,000.00 $ 900.00 $ 12,300.00 $ 60,000.00 G. Unit contribution margin $ 12.00 $ 1.00 $ 20.50 $ 30.00 H. Break-even point (units) 1,167.00 700.00 8,000.00 4,000.00 I. Margin of safety (units) 1,333.00 900.00 600.00 2,000.00 *Gold colour text are given date and black colour text are computed date. Formulas used in solving: 1. Contribution Margin = Sales Revenue - (Unit SalesXVariable Cost) 2. Net Income - Contribution Margin - Fixed Costs 3. Unit Contribution Margin = Contribution Margin / Unit Sales 4. Break-even Point (Units) = Fixed Costs / Unit Contribution Margin 5. Margin of Safety = Unit Sales - Break-even Point (Units) The above formulas have been used in different ways to solve the above table. Attaching a show formulas image for understanding. 22 23 24 25 26 If you need any further explanation, kindly request in the comment section, glad to be helpful.

А B с D E F 4 5 5 6 ar 9 6 7 8 9 10 11 12 13 14 Particulars Case A Case B Case C Case D A. Unit sales 2500 1600 -E13+E14 =F13+F14 B. Sales revenue 80000 =(D6*D8)+D9 -(E6*E8)+E9 240000 C. Variable cost per unit 20 2 24 = (F7-F9)/F6 D. Contribution margin -C7-(C6*08) 1600 -E6*E12 =F6*F12 E. Fixed costs 14000 =D9-011 164000 =F13*F12 F. Net income -C9-C10 900 -E9-E10 =F9-F10 G. Unit contribution margin =C9/C6 -D9/D6 -E10/E13 30 H. Break-even point (units) =ROUNDUP(C10/C12,0) =D10/D12 8000 4000 I. Margin of safety (units) =C6-C13 =D6-013 600 2000