FiFillll in the missing amounts in each of the eight case situations below. Each
ID: 2374299 • Letter: F
Question
FiFillll in the missing amounts in each of the eight case situations below. Each case is independent of the others.
Assume that only one product is being sold in each of the four following case situations:(Input all amounts as positive values except losses which should be indicated by a minus sign.)
Assume that more than one product is being sold in each of the four following case situations: (Input all amounts as positive values except losses which should be indicated by a minus sign.)
FiFillll in the missing amounts in each of the eight case situations below. Each case is independent of the others.
Explanation / Answer
a.)
Case 1:
Net operating income (Loss) = Contribution margin - Fixed expenses = 80,100 - 80,000 = $100
Contribution margin per unit = Contribution margin/Units sold = 80,100/8,900 =$ 9
Case 2:
Units sold = Contribution margin / Contribution margin per unit = $ 232,000/$ 16 = 14,500
Variable expenses=Sales - Contribution margin = $ 377,000 - $ 232,000 = $145,000
Case 3:
Sales = Variable expenses + Contribution margin = 271,600 + $ 213,400 = $503,000
Fixed expenses = Contribution margin - Net operating income (Loss) =$ 213,400 - $ 136,400 = $77,000
Case 4:
Variable expenses=Sales - Contribution margin = $ 156,400 - $ 73,600 = $82,800
Contribution margin per unit = Contribution margin/Units sold = $ 73,600 / 4,600=$ 16
b)
Case 1:
Variable expenses=Sales - Contribution margin = $ 459,000 - $ 160,650 = $ 298,350
Fixed expenses = Contribution margin - Net operating income (Loss) = $ 160,650 - $ 49,650 = $111,000
Case 2:
Net operating income (Loss) = Contribution margin - Fixed expenses = $ 66,990 - $ 55,000 = $11,990
Contribution margin ratio (percent) = Contribution margin / Sales = $ 66,990/$ 203,000 = 33%
Case 3:
Sales = Contribution margin / Contribution margin ratio (percent) = $ 544,440 / 78 % = $ 698,000
Variable expenses=Sales - Contribution margin = $ 698,000 - $ 544,440 = $ 153,560
Case 4:
Fixed expenses = Contribution margin - Net operating income (Loss) = $ 204,000 - $ (20,000) = $224,000
Contribution margin ratio (percent) = Contribution margin / Sales = $ 204,000/$ 300,000 = 68%
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