E12-6 Understanding CVP relationships [LO 7, 9] Calculate the missing amounts fo

Question

E12-6 Understanding CVP relationships [LO 7, 9]

Calculate the missing amounts for each of the following firms: (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Round to the nearest whole number for the Units Sold column. For the remaining columns round your answers to 2 decimal places. Omit the "$" sign in your response.)

Calculate the missing amounts for each of the following firms: (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Round to the nearest whole number for the Units Sold column. For the remaining columns round your answers to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

Answers are..

Operating Income = units(selling price - variable costs) -fixed costs

Oerating Income = Contribution margin - fixed costs

Firm A :

Profit = 10300(27-x) -42500

profit = 97400-42500 = 54900

x = variable costs = $17.54

Firm B:

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