Reference no: EM131224065
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:
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
b. 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%
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