Question

Parts (A) through (D) are four different CVP analyses, but some information is missing from each analysis. Each part contains a separate analysis.

Fill in the unknowns for each part.

Part		Sales		Fixed Costs			Variable Costs			Total Costs			Contribution Margin %			Operating Income
A		$3,100		$1,310			$			$			65	%		$
B		4,000		3,000						4,000				%
C		6,200		930										%		310
D							460			1,110				%		3,49

*Need to fill in the missing information*

Answer 1

Total cost=Fixed costs+Variable costs

Contribution margin=Sales-Variable cost  
Contribution margin ratio=Contribution margin/Sales

Contribution margin-Fixed costs=Operating income

Sales-Total costs=Operating income

Part	Sales	Fixed costs	Variable costs	Total costs	Contribution margin%	Operating income
A	3100	1310	3100*(1-0.65)=$1085	(1310+1085)=$2395	65%	(3100-2395)=$705
B	4000	3000	(4000-3000)=1000	4000	(4000-1000)/4000=75%	(4000-4000)=$0
C	6200	930	(5890-930)=$4960	(6200-310)=$5890	(6200-4960)/6200=20%	310
D	(1110+349)=$1459	(1110-460)=$650	460	1110	(1459-460)/1459=68.47%(Approx)	349

Operating income=Contribution margin-Fixed costs