Fill in the missing amounts in each of the eight case situations below. Each cas

Question

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to 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.) Required a. Assume that only one product is being sold in each of the four following case situations b. Assume that more than one product is being sold in each of the four following case situations (For all requirements, Loss amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: e #3 e#4 292,000 90,520 ase 195,000 122,850 4,000 448,000 Sales Variable expenses Fixed expenses Net operating income (loss) 466,000 $ 68,200 97,200(20,520) margin ratio 40% 80% C Required A

Explanation / Answer

Particulars case 1 case 2 case 3 Case 4 Sales 448000 195000 e) 704000 292000 Variable expenses a) 268800 122850 f) 140800 90520 Fixed expenses b) 111000 54000 466000 g) 222000 Net operating Income (loss) 68200 c) 18150 97200 -20520 Contribution margin ratio (percent) 40% d) 37% 80% h) 69% ) case1: a) Calculation of variable expenses: Contribution= sales* contributio margin ratio                           = 448000*0.40= 179200 Variable expenses= Sales- Contribution                                       = 448000-179200=$268800 Variable expenses= $268800 b)calculation of fixed expenses: Fixed expenses= Contribution- net operating income                                = 179200-68200= $111000 Fixed expenses= $111000 Case 2: c)Calculation of net operating Income: Net operating income= sales-variable expenses- fixed expenses                                              = 195000-122850-54000= $18350 Net operating income= 18350 d) Calculation of contribution margin ratio: Contribution= sales- variable expenses                          = 195000-122850=72150 Contribution margin ratio= Contribution/sales*100                                                     = 72150/195000*100=37% Case3: e) Calculation of sales: Contribution= Fixed expenses+ net operating income'                           = 466000+97200= 563200 Sales= Contributon/ contribution margin ratio= 563200/0.80= 704000 f) Calculation of variable expenses: Variable expenses= Sales- contribution                                      = 704000-563200= 140800 Case 4: g) Calculation of fixed expenses: Contribution= sales- variable expenses                           = 292000-90520= 201480 Fixed expenses= Contribution+ net operating loss                                = 201480+20520=222000 h) calculation of contribution margin ratio: Contribution margin ratio= Contribution/sales*100                                                     =201480/292000*100=69%

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