Fill in the missing amounts in each of the eight case situations below. Each cas

Question

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 Assume that only one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 20,900 Unit sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit 9,700 5,400 S 291,000 S 345,000 $178,200 145,500 209,000 89,000 177,000 89,000 S 16,200 S 167,800 12 2,600)

Explanation / Answer

a.

Net operating income = Sales - Variable expenses - Fixed expenses

Contribution margin per unit = (sales - variable expenses) / units sold

  

Net operating income = Sales - Variable expenses - Fixed expenses

Contribution margin ratio = (sales - variable expenses) / sales

Case#1 Case#2 Case#3 Case#4 Unit sold 9,700 13,800 [(345,000-151,800)/14] 20,900 5,400 Sales 291,000 345,000 459,800 [(20,900*12)+209,000] 178,200 Variable expenses 145,500 151,800 (345,000-177,000-16,200) 209,000 91,800 (178,200-89,000+2,600) Fixed expenses 89,000 177,000 83,000 [459,800-209,000-167,800] 89,000 Net opeating income(loss) 56,500 (291,000-145,500-89,000) 16,200 167,800 (2,600) Contribution margin per unit 15 [(291,000-145,500)/9,700] 14 12 16 [(178,200-91,800)/5,400]

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