Calculate the missing amounts for each of the following firms: (Do not round you

Question

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

Firm A

Contribution Margin = Unit sold*(selling price -Variable Costs)

96,500 = 11100*(21-Variable Costs)

Variable cost = $12.31

Operating Income (Loss) = 96,500- 41800 =$54700

Firm B

Contribution Margin - Fixed cost = Income

Contribution Margin = 32,290+66100 =$98390

Contribution Margin = Unit sold*(selling price -Variable Costs)

98390 = 8100*( selling price-18)

Selling price =$ 30.15

Firm C

Contribution Margin - Fixed cost = Income

Fixed cost = 10,200 - (-6,450) =$16650

Unit sold*(7.4-3.6) = 10200

Unit sold =$2684

Firm D

Contribution Margin = Unit sold*(selling price -Variable Costs)

4150*(selling price-49) =40,200

Selling price = $58.69

Operating Income = 40,200 -48,970 =-8770

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