Question

Exercise 7-23 Fill in Blanks; Basic CVP Relationships (LO 7-1, 7-2) Fill in the missing data for each of the following independent cases. (Ignore income taxes.) (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required.) Sales Revenue Variable Expenses Total Contribution Margin Fixed Expenses Net Income Break-Even Sales Revenue 91,000 72,800 $ 91,000 190,000 190,000 41,000 340,000 136,000 15,000 180,000 20,100 60,000

Answer 1

Answer

--Equations used:
>Sales - Variable cost = Contribution margin
>Contribution margin - Fixed Cost = Net Income
>[Fixed cost / (Contribution margin/Sales) ] = Break even sales

	Sales revenue	Variable expenses	Total contribution margin	Fixed expenses	Net Income	Break even sales revenue
1	$455,000	$91,000	$364,000	$72,800	$291,200	$91,000
2	$190,000	$149,000	$41,000	$41,000	$0	$190,000
3	$476,000	$136,000	$340,000	$160,000	$180,000	$224,000
4	$60,000	$15,000	$45,000	$24,900	$20,100	$33,200

--Working

	Sales revenue	Variable expenses	Total contribution margin	Fixed expenses	Net Income	Break even sales revenue
1	=91000/20%	91000	=455000-91000	72800	=364000-72800	91000
2	190000	=190000-41000	41000	41000	=41000-41000	190000
3	=136000+340000	136000	340000	=340000-180000	180000	=160000/(340000/476000)
4	60000	15000	=60000-15000	=45000-20100	20100	=24900/(45000/60000)