Batuinewing Required a. Assume that only one product is being sold in each of th
ID: 2540192 • Letter: B
Question
Batuinewing 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.) 5 Complete this question by entering your answers in the tabs below. eBook Hint Required A Required B Print Assume that only one product is being sold in each of the four following case situations References Case #1 Case #2 Case #3 Case #4 Unit sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit 8,100 19,200 4,000 $234,900 $ 362,500 $ 120,000 129,600 192,000 89,000 176,000 76,000 27,000 $ 118,200 $ (32,000) 14 $ Required A Required B > Mc Graw Hill Prey 1 of 3II Next >Explanation / Answer
.Solution:
Case 1
Net Operating Income (loss) = Sales – Variable Expense – Fixed Expense = 234900 – 129,600 – 89,000 = $16,300
Contribution Margin Per Unit = (Sales – Variable Expense) / Unit Sold = (234,900 – 129,600) / 8100
= $13
Case 2
Contribution Margin = Fixed Expense + Net Operating Income = 176,000 + 27,000 = $203,000
Variable Expense = Sales - Contribution Margin = $362,500 – 203,000 = $159,500
Unit Sold = Contribution Margin / CM per unit = 159,500 / 14 = 11,393 Units
Case 3
Contribution Margin = Unit Sold x CM Per Unit = 19200 * 11 = $211,200
Sales = Contribution Margin + Variable Expense = 211,200 + 192,000 = $403,200
Fixed Expense = Contribution Margin – Net Operating Income = 211,200 – 118,200 = $93,000
Case 4
Contribution Margin = Fixed Expense 76,000 + Net Operating Income (-32,000) = $44,000
Variable Expense = Sales 120,000 - Contribution Margin 44,000 = $76,000
CM Per unit = Contribution Margin / Unit Sold = $44,000 / 4000 = $11
Case # 1
Case # 2
Case # 3
Case # 4
Unit Sold
8100
11393
19200
4000
Sales
$234,900
$362,500
$403,200
$120,000
Variable Expenses
$129,600
$159,500
$192,000
$76,000
Fixed Expenses
$89,000
$176,000
$93,000
$76,000
Net Operating Income (loss)
$16,300
$27,000
$118,200
-$32,000
Contribution Margin per unit
$13
$14
$11
$11
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Pls ask separate question for remaining parts.
Case # 1
Case # 2
Case # 3
Case # 4
Unit Sold
8100
11393
19200
4000
Sales
$234,900
$362,500
$403,200
$120,000
Variable Expenses
$129,600
$159,500
$192,000
$76,000
Fixed Expenses
$89,000
$176,000
$93,000
$76,000
Net Operating Income (loss)
$16,300
$27,000
$118,200
-$32,000
Contribution Margin per unit
$13
$14
$11
$11
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