Question

Find the missing figures for each of the independent cases shown below. (Hint: reconstruct income statement for each scenario)

Selling Price/unit		Variable Costs/unit		Sold		Contribution Margin (total)		Fixed Costs		Profit / (Loss)
	80.00	a.			10,000.00		200,000.00		120,000.00	b.
	15.00		10.00	c.			25,000.00	d.			0.00
	4.00		2.00	e.		f.			3,000.00		-   1,000.00
g.			75.00		500.00		12,500.00		8,000.00	h.
	10.00	i.			1,000.00	j.			6,000.00		-   2,000.00

Answer 1

a)

Contribution maegin per unit = $200,000/10,000 = $20 per unit

Contribution margin per unit = Selling price - Variable cost per unit

Variable cost per unit = Selling price-Contribution margin per unit

Variable cost per unit = $80-$20

a) Variable cost per unit = $60

b)

Profit/( Loss) = Contribution margin- Fixed Cost

Profit/( Loss) = 200,000-120,000

b) Profit= $80,000

c)

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $15-$10

Contribution margin per unit = $5

No. of units sold = Total Contribution margin / Contribution margin per unit

No. of units sold = $25,000/$5

c) No. of units sold = 5000 units

d)

Profit/( Loss) = Contribution margin- Fixed Cost

Fixed cost = Contribution margin- Profit/(Loss)

Fixed cost = 25,000-0

d) Fixed cost = $25,000

f)

Profit/( Loss) = Contribution margin- Fixed Cost

Contribution margin = Fixed cost + Profit/(Loss)

Contribution margin = 3000-1000

f) Contribution margin = $2,000

e)

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = $4-$2

Contribution margin per unit = $2

No. of units sold = Total Contribution margin / Contribution margin per unit

No. of units sold = $2,000/$2

e) No. of units sold = 1000 units

g)

Contribution margin per unit= Total contribution margin/No. of units sold

Contribution margin per unit= $12,500/500

Contribution margin per unit= $25

Selling price per unit = Contribution margin per unit + Variable cost per unit

Selling price per unit = $25 + $75

g) Selling price per unit = $100

h)

Profit/( Loss) = Contribution margin- Fixed Cost

Profit/( Loss) = 12,500-8000

h) Profit = $4,500

j)

Profit/( Loss) = Contribution margin- Fixed Cost

Contribution margin = Fixed cost + Profit/(Loss)

Contribution margin = 6000-2000

j) Contribution margin = $4,000

i)

Contribution maegin per unit = $4,000/1000 = $4 per unit

Contribution margin per unit = Selling price - Variable cost per unit

Variable cost per unit = Selling price-Contribution margin per unit

Variable cost per unit = $10-$4

i) Variable cost per unit = $6