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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.
Assume that only one product is being sold in each of the four following case situations:
A Case #1 Case #2 Case #3 Case #4
Unit sold 8,700 19,400 5,300
Sales $243,600 $303,600 $143,100
Variable expenses 121,800 271,600
Fixed expenses 81,000 177,000 86,000
Net operating income (loss) $(5,400) $38,400 $(33,000)
Contribution margin per unit $13 $6
B Case #1 Case #2 Case #3 Case #4
Sales $458,000 $199,000 $296,000
Variable expenses 127,360 100,640
Units Sold
Fixed expenses 67,000 474,000
Net operating income (loss) $51,880 $106,440 $(27,640)
Contribution margin per unit 36% 84%
A)
Particular | Case 1 | Case 2 | Case 3 | Case 4 |
Unit Sold | 8700 | 13200 | 19400 | 5300 |
Sales | 243600 | 303600 | 388000 | 143100 |
Variable expenses | 121800 | 132000 | 271600 | 90100 |
Fixed expenses | 81000 | 177000 | 78000 | 86000 |
Net operating income (loss) | 40800 | -5400 | 38400 | -33000 |
Contribution margin per unit | 14 | 13 | 6 | 10 |
Formula Sheet:
Particular | Case 1 | Case 2 | Case 3 | Case 4 |
Unit Sold | 8700 | =(303600-132000)/13 | 19400 | 5300 |
Sales | 243600 | 303600 | =271600+(19400*6) | 143100 |
Variable expenses | 121800 | =303600-177000+5400 | 271600 | =143100-86000+33000 |
Fixed expenses | 81000 | 177000 | =388000-271600-38400 | 86000 |
Net operating income (loss) | =243600-121800-81000 | -5400 | 38400 | -33000 |
Contribution margin per unit | =(243600-121800)/8700 | 13 | 6 | =(143100-90100)/5300 |
B)
Particular | Case 1 | Case 2 | Case 3 | Case 4 |
Sales | 458000 | 199000 | 6,91,000 | 296000 |
Variable expenses | 293120 | 127360 | 110560 | 100640 |
Fixed expenses | 113000 | 67000 | 474000 | 223000 |
Net operating income (loss) | 51880 | 104640 | 106440 | -27640 |
Contribution margin ratio (%) | 36% | 36% | 84% | 66% |
Formula Sheet:
Particular | Case 1 | Case 2 | Case 3 | Case 4 |
Sales | 458000 | 199000 | =(474000+106440)/84% | 296000 |
Variable expenses | =458000*(1-36%) | 127360 | =691000-474000-106440 | 100640 |
Fixed expenses | =458000-293120-51880 | 67000 | 474000 | =296000-100640+27640 |
Net operating income (loss) | 51880 | =299000-127360-67000 | 106440 | -27640 |
Contribution margin ratio (%) | 0.36 | =(199000-127360)/199000 | 0.84 | =(296000-100640)/296000 |