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 only one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 15,000 10,000 6,000 Unit sold Sales $ 180,000 $ 100,000 $ 300,000 120,000 70,000 50,000 32,000 100,000 Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit $ 8,000 $ 12,000 $ (10,000) $ 10 $ 13 Required A Required B>

Answer 1

Case4- Sales 300,000 - variable cost 210,000 90,000 = contribution margin - Fixed Expense 100,000 =Net Income (10,000) 15 Contribution margin per unit Sold units =6,000

1- Net Income =contribution margin - Fixed Expense -10,000 = contribution margin- 100,000 contribution margin = 100,000- 10,000 =90,000 2- contribution margin = sales- variable cost 90,000= 300,000- variable cost Variable cost = 300,000-90,000 =210,000

2- CONLRULION margin = sales- variable cost 90,000= 300,000- variable cost Variable cost = 300,000-90,000 = 210,000 3- contribution margin per unit sales per unit- variable cost per unit = 50 - 35 =15 4- sales per unit = 300,000/6000 5- variable cost per unit = 210,000/ 6,000

Case 3- Sales 200,000 - variable cost 70,000 130,000 = contribution margin - Fixed Expense 12,000 Net income 118,000 Contribution margin per unit =13 Sold units = 10,000 1-Contribution margin per unit = sales per unit- variable cost per unit 13= Sales per unit -7 Sales per unit = 13+7 = 20

2- Sales = sales per unit * sold units = 20* 10,000 =200,000 3-contribution margin = 200,000- 70,000 = 130,000 4- Net Income = 130,000-12,000 = 118,000

Case 2- Sales 100,000 - variable cost 60,000 40,000 | = Contribution margin Fixed Expense 32,000 = Net Income 8,000 1- Net Income = contribution margin- Fixed Expense 8,000=contribution margin-32,000 Contribution margin = 32,000+ 8000 = 40,000 2- contribution margin = sales- variable cost 40,000= 100,000- variable cost Variable cost = 100,000- 40,000 =60 000

Case 1- Sales 180,000 - variable cost 120,000 60,000 =Contribution margin - Fixed Expense 50,000 = Net Income 10,000 1-Contribution margin per unit = sales per unit - variable cost perunit = 12 - 8= 4 2-sales per unit = sales / sold units = 180,000/15,000 = 12 3-Variable cost per unit = variable cost/ units = 120,000 / 15,000 = 8