Question

Compute the missing amounts in the contribution margin income statement shown below. (Round "Per Unit" answers to 2 decimal places.) Company A Number of units sold Company B 2,325 Total Per unit Total Per unit $427,800 $ 93.00 280,600 Sales Variable costs Contribution margin Fixed costs Net income 111,600 148,800 55,800 $ 98.900

Answer 1

For solving this type of questions , you should know some formulas

Contribution Margin = sale - Variable cost

Net Income = Contribution Margin + Fixed cost

For getting per unit value : divide that value by number of units of that company

Number of Unit Sold Net Income per unit = Net Income / Number of units 98900/4600 21.5 $ per unit Sale Variable Cost Contribution Margin Fixed Cost Net Income Company A Company B 4600 2,325 Total Per Unit Total Per Unit 4,27,800 $ 93.00 260400 112.00 280600 $ 61.00 111600 48.00 1,47,200 $ 32.00 148800 64.00 48,300 $ 10.50 55800 24.00 98 900$ 21.50 93000 40.00 $ $ $ $ CALCULATIONS FOR COMPANY "B" Sales Contibution + Variable cost 148800+111600 = CALCULATIONS FOR COMPANY"A" 260400 Sale per unit Number of Unit of Company A= sale value divide by sale value per unit 427800 93 4600 units Sale / Number of units 260400/23 25 112 per unit variable cost per unit Contribution Margin = Sale value - Variable Cost 427800-280600 147200 Variable Cost / Number of units 111600/2325 64 = per unit Contribution Margin per unit = Contribution Margin per unit = Contribution / Number of units 147200/4600 32 per unit Contribution / Number of units 148800/2325 64 = per unit Fixed Cost fixed Cost per unit = Contribution Margin-Net Income 147200-98900 48300 = Fixed Cost/ Number of units 55800/2325 24 = = per unit Fixed Cost Per Unit Net Income Fixed Cost/ Number of units 48300/4600 units 10.5 per unit Contribution Margin- fixed Cost 148800-55800 93000 Net Income per unit Variable cost per unit = = variable cost/ Number of units 280600/4600 61 per unit Net Income / Number of units 93000/2325 40 per unit =