Question

Cross-number problem (fill in the missing amounts in the cases below, each case is independent)

Case	Units Sold	Sales	Variable Expenses	Contribution Margin per unit	Fixed Expenses	Net Income
1	?	$100,000	?	10	32,000	8,000
2	6,000	300,000	?	?	100,000	(10,000)

Case	Sales	Variable expenses	Average contribution margin (percent)	Fixed expenses	Net Income (loss)
3	$500,000	?	20	?	$7,000
4.	?	?	60	130,000	20,000

Answer 1

1. Total Contribution Margin = Fixed Expenses+ Net Income= $32,000+$8,000= $40,000

Number of units Sold= Total Contribution Margin/Contribution Margin per unit= $40,000/10= 4,000 units

Selling Price per unit= Total Sales/Sales units= $100,000/4,000=$25 per unit

Variable Expenses per unit= Selling Price per unit- Contribution margin per unit= $25-$10=$15

Total Variable Expenses= Number of units sold*Variable expenses per unit= 4,000*$15=$60,000

2. Total Contribution Margin = Fixed Expenses+ Net Income/(Loss)=$100,000-$10,000=$90,000

Selling Price per unit= Total Sales/Sales units=$300,000/6,000=$50 per unit

Contribution Margin per unit= Total Contribution Margin/ Units sold= $90,000/6,000=$15

Variable Expenses per unit= Selling Price per unit- Contribution margin per unit=$50-$15=$35

Total Variable Expenses= Number of units sold*Variable expenses per unit=6,000*$35=$210,000

3. Sales=$500,000

Contribution Margin= Sales *20%=$500,000*20%= $100,000

Variable Expenses= Sales- Contribution Margin= $500,000-$100,000=$400,000

Fixed Expenses= Contribution Margin- Net Income=$100,000-$7,000= $93,000

4.Total Contribution Margin = Fixed Expenses+ Net Income= $130,000+$20,000=$150,000

Sales= Contribution Margin/60%= $150,000/60%= $250,000

Variable Expenses= Sales- Contribution Margin= $250,000-$150,000=$100,000