Answer:
Missing Amounts
Case Units Sold Sales Variable Contribution Fixed Net Operating
Expenses Margin Per Expenses Income/Loss
Unit
1 15,000 $180,000 $120,000 $4 $50,000 $_10,000_
2 4,000 $100,000 $60,000 $10 $32,000 $8,000
3 10,000 $_200,000_$70,000 $13 $_118,000_ $12,000
4 $6,000 $300,000 $210,000 $15 $100,00 $(10,000)
2.
Case Sales Variable Average Contribution Fixed Net Operating
Expenses Margin Ratio Expenses Income/Loss
1 $500,000 $_400,000_ 20% $_93,000__ $7,000
2 $400,000 $260,000 35% $100,000 $40,000
3 $_250,000_ _100,000_ 60% $130,000 $20,000
4 $600,000 $420,000 __30__% $185,000_ $(5,000)
Explanation:
Income Statement
Case 1 Case 2 Case 3 Case 4
Units Sold 15,000 4,000 10,000 6,000
Sales $180,000 $100,000 $200,000 $300,000
Variable Expenses 120,000 60,000 70,000 210,000
Contribution $60,000 $40,000 $130,000 $90,000
Contribution per
unit $4 $10 $13 $15
Fixed Expenses 50,000 32,000 118,000 100,000
Net operating
Income / Loss $10,000 $8,000 $12,000 $(10,000)
2. Income Statement
Case 1 Case 2 Case 3 Case 4
Sales $500,000 $400,000 $250,000 $600,000
Variable Expenses 400,000 260,000 100,000 420,000
Contribution $100,000 $140,000 $150,000 $180,000
Average Contribution
Margin Ratio 20% 35% 60% 30%
Fixed Expenses 93,000 100,000 130,000 185,000
Net operating
Income / Loss $7,000 $40,000 $20,000 $(5,000)
