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:

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:

Complete this question by entering your answers in the tabs below.

• Required A

• Required B

Assume that only one product is being sold in each of the four following case situations:

	Case #1	Case #2	Case #3	Case #4
Unit sold	15,000		10,000	6,000
Sales	$180,000	$100,000		$300,000
Variable expenses	120,000		70,000
Fixed expenses	50,000	32,000		100,000
Net operating income (loss)		$8,000	$12,000	$(10,000)
Contribution margin per unit		$10	$13

Assume that more than one product is being sold in each of the four following case situations:

	Case #1	Case #2	Case #3	Case #4
Sales	$500,000	$400,000		$600,000
Variable expenses		260,000		420,000
Fixed expenses		100,000	130,000
Net operating income (loss)	$7,000		$20,000	$(5,000)
Contribution margin ratio (percent)	20%		60%

Answer 1