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polet [3.4K]
2 years ago
15

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way t

o 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.)
Assume that only one product is being sold in each of the four following case situations:

Case Units Sold Sales Variable Expenses Contribution Margin Per Unit Fixed Expenses Net Operating Income Loss
1 15,000 $180,000 $120,000 $4 $50,000 $______
2 4,000 $100,000 $60,000 $10 $32,000 $8,000
3 10,000 $______ $70,000 $13 $_______ $12,000
4 $6,000 $300,000 $210,000 $15 $100,00 $(10,000)


b. Assume that more than one product is being sold in each of the four following case situations:


Case Sales Variable Expenses Average Contribution Margin Ratio Fixed Expenses Net Operating income (Loss)
1 $500,000 $______ 20% $______ $7,000
2 $400,000 $260,000 35% $100,000 $40,000
3 $______ $______ 60% $130,000 $20,000
4 $600,000 $420,000 _______% $______ $(5,000)
Business
1 answer:
Marta_Voda [28]2 years ago
7 0

Answer:

We prepared a contribution format income statement for each case, entered the known data, and then computed the missing items.

Part a:

Case                            1

Units Sold                     15000

Sales                                180,000/15000 = $ 12

Variable Expenses         120,000/ 15,000 = $ 8

Contribution Margin        $4*15000= 60,000

Fixed Expenses          50,000

Net Operating Income Loss   <u>$ 10,000</u>

<u />

Case                            2

Units Sold                     4000

Sales                                100,000/4000 = $ 25

Variable Expenses         60,000/ 4,000 = $ 15

Contribution Margin        $ 10*4000= 40,000

Fixed Expenses          32,000

<u>Net Operating Income Loss   $ 8000</u>

Case                            3

Units Sold                     10,000

Sales                                <u>200,000/10,000 = $ 20</u>

Variable Expenses         70,000/ 10,000 = $ 7

Contribution Margin        $ 13*  10,000= 130,000

Fixed Expenses      <u>  </u><u> 118,000</u>

<u>Net Operating Income Loss   $ 12,000</u>

Case                            4

Units Sold                     6,000

Sales                                300,000/ 6,000 = $50

Variable Expenses         210,000/ 6000 = $ 35 per unit

Contribution Margin        $ 15*  6000=  $ 90,000

Fixed Expenses      <u>   100,000</u>

<u>Net Operating Income Loss   $ (10,000)</u>

<u />

<u>Part b:</u>

Case                            1

Sales                             500,000  

Variable Expenses       <u>400,000  </u>  

Contribution Margin     20% of 500,000 = $ 100,000

Fixed Expenses           93,000

Net Operating Income Loss   $ 7,000

<u />

Case                            2

Sales                             400,000  

Variable Expenses       26<u>0,000  </u>  

Contribution Margin     140,000

Fixed Expenses           100,000

Net Operating Income Loss   $ 40,000

<u />

Case                            3

Sales                             250,000  

Variable Expenses      1<u>00,000  </u>  

Contribution Margin     150,000 ( 60 % of Sales )

Fixed Expenses           130,000

Net Operating Income Loss   $ 20,000

Case                            4

Sales                             600,000  

Variable Expenses       42<u>0,000  </u>  

Contribution Margin     180,000 (<u>  180,000/600,000 *100 = 30 % )</u>

Fixed Expenses           <u>185,000</u>

Net Operating Income Loss   $ (5,000)

<u />

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