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.)

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 9,900 20,600 5,400 Sales $297,000 $356,200 $189,000 Variable expenses 128,700 164,800 Fixed expenses 97,000 179,000 87,000 Net operating income (loss) $(28,300) $184,800 $4,800 Contribution margin per unit $11 $13 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 $457,000 $195,000 $291,000 Variable expenses 124,800 87,300 Fixed expenses 67,000 472,000 Net operating income (loss) $50,520 $115,640 $(31,300) Contribution margin ratio (percent) 36 % % 83 % %

Answer 1