Question

Fill in the blanks for each of the following independent cases.

Answer 1

• The correct form to fill the blanks of the following independent cases is:

Case    Revenues variable    Fixed   Total  operating   contribution

                              cost         cost     cost income margin      Contribution

a             2400       600           200     800     1600            75%        1800

b             2500      1400           200    1600    900              44%       1100

c            500           300              200   500       0               40%        200

d            1200          900              200    1100   100              25%          300

The below formulas should be used:

• Contribution = Revenues - variable cost.

• Contribution margin = contribution ÷ revenue.

• Operating income = Revenue - total cost

• Total cost = fixed cost + variable cost