Units Sold Selling Price Variable Costs per Unit Contribution Margin Fixed Cost

Question

                  Units Sold      Selling Price      Variable Costs per Unit   Contribution Margin   Fixed Cost   Operating Income (Loss)

Firm A       11,200             $24.00                  ?                                    $100,800                    $41,300        ?

Firm B        8,400              ?                           $18.20                           ?                                  64,500         $32,940

Firm C        ?                    7.30                       4.20                                 10,850                       ?                  (6750)

Firm D         4720             ?                            51.25                               41,064                       48,210           ?

Calculate the missing amounts for each of the followuing firms.

Please show work

Explanation / Answer

Firm A

Variable cost per unit = x

24 - x = 100800/11200

x = 15

Operating income = 100800 - 41300 = 59,500

Firm B

Contribution margin = 64500 + 32940 = 97440

Selling price = 18.20 + 97440 / 8400 = 29.80

Firm C

Units sold = 10850 / ( 7.3 - 4.2 ) = 3,500

Fixed cost = 10850 - ( -6750 ) = 17,600

Firm D

Selling price = 51.25 + 41064 / 4720 = 59.95

Operating Income = 41064 - 48210 = -7146

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