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:

(For all requirements, Loss amounts should be indicated by a minus sign.)

A. Assume that only one product is being sold in each of the four following case situations:

	Case #1 Case #2 Case #3 Case #4 Unit sold 8,600 20,200 4,400 Sales $232,200 $399,600 $140,800 Variable expenses 163,400 181,800 Fixed expenses 98,000 178,000 90,000 Net operating income (loss) $14,400 $191,800 $(19,600) Contribution margin per unit $13 $14

B.Assume that more than one product is being sold in each of the four following case situations:

	Case #1 Case #2 Case #3 Case #4 Sales $454,000 $209,000 $298,000 Variable expenses 142,120 89,400 Fixed expenses 68,000 468,000 Net operating income (loss) $89,300 $97,600 $(10,400) Contribution margin ratio (percent) 45 % % 80 % %

Answer 1

1
		Case #1	Case #2	Case #3	Case #4
	Unit sold	8,600	14,800	20,200	4,400
	Sales	232,200	399,600	464,600	140,800
	Variable expenses	163,400	207,200	181,800	70,400
	Fixed expenses	98,000	178,000	91,000	90,000
	Net operating income (loss)	(29,200)	14,400	191,800	(19,600)
	Contribution margin per unit	$8.00	$13.00	$14.00	$16.00
2		Case #1	Case #2	Case #3	Case #4
	Sales	454,000	209,000	707,000	298,000
	Variable expenses	249,700	142,120	141,400	89,400
	Fixed expenses	115,000	68,000	468,000	219,000
	Net operating income (loss)	89,300	(1,120)	97,600	(10,400)
	Contribution margin ratio (percent)	45%	32%	80%	70%