Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing
data in each independent case.
Case 1
Case 2
Case 3
Case 4
Sales revenue
$90,000
$150,000
Answer
Answer
Contribution margin
$45,000
Answer
$40,000
Answer
Fixed costs
$30,000
Answer
Answer
Answer
Net income
Answer
$15,000
$24,000
Answer
Variable cost ratio
Answer
0.40
Answer
0.60
Contribution margin ratio
Answer
Answer
0.25
Answer
Break-even point (dollars)
Answer
Answer
Answer
$150,000
Margin of safety (dollars)
Answer
Answer
Answer
$125,000