Question

In: Accounting

Up Down Left Right Net Sales Revenue $         1,080,000 $ (d) 1,642,500 $ (j) Variable cost...

Up

Down

Left

Right

Net Sales Revenue

$         1,080,000

$ (d)

1,642,500

$ (j)

Variable cost

(a)

100,000

1,314,000

143,100

Fixed Cost

(b)

240,000

118,000

(k)

Operating income (loss)

$              87,000

$ (e)

$ (g)

82,600

Units Sold

180,000

16,000

(h)

(I)

Contribution Margin per unit

$                  3.00

$ (f)

$        73.00

$    18.00

Contribution Margin Ratio

( c)

80%

(i)

40%

Net Sales Revenue

1,080,000

Variable costs

____________

Fixed costs

____________

Operating income (loss)

87,000

Units sold

180,000

Contribution margin per unit

3.00

Contribution margin ration

___________%

Solutions

Expert Solution

Up Down Left Right
Net Sales Revenue 1080000 d $500000 1,642,500 j) 238500
Variable cost a 540000 100,000 1,314,000 143,100
Fixed Cost b $453000 240,000 118,000 k) 12800
Operating income (loss) 87000 e $160000 g) $210500 82,600
Units Sold 180,000 16,000 h) 4500 l) 5300
Contribution Margin per unit 3 f $25 73 18
Contribution Margin Ratio c 50% or .5 80% i) 20% or .2 40%
working
a) Variable cost
Selling price-Contribution margin
(1080000/180000)-3 3 per unit
Total variable cost (180000*3) 540000
b) Fixed Cost 453000
Contribution margin- Operating Income
(180000*3)-87000
c) Contribution Margin Ratio 50%
CM/Sales*100
3/6*100
d) Net sales Revenue
Variable cost/(1-CM ratio)
100000/.2 500000
e)
Operating income (loss) 160000
500000-100000-240000
f)
Contribution Margin per unit 25
(500000-100000)/16000
g
Operating income (loss)
Sales-Variable cost-Fixed cost
1642500-1314000-118000 210,500
h) Units sold 4500
CM/CM per unit
(1642500-1314000)/73
i)
Contribution Margin Ratio 20 %
CM/Sales*100 0.2
(1642500-1314000)/1642500*100
j)
Sales 238500
Variable cost/(1-CM ratio)
143100/.6
k) Operating Income 12800
238500-143100-82600
i)
Units sold 5300
CM/CM per unit
(238500-143100)/18

If any doubt please comment


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