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.) a. Assume that only one product is being sold in each of the four following case situations: (picture1) b. Assume that more than one product is being sold in each of the four following case situations: (picture2)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 14SP
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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.)

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

(picture1)

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

(picture2)

Average
Contribution
Net Operating
Variable
Fixed
Margin
Ratio
Income
Case
Sales
Expenses
Expenses
(Loss)
$500,000
$400,000 $260,000
1.
20%
?
$7,000
?
$100,000
$130,000
2.
?
?
60%
$20,000
$(5,000)
3.
4.
$600,000 $420,000
?
Transcribed Image Text:Average Contribution Net Operating Variable Fixed Margin Ratio Income Case Sales Expenses Expenses (Loss) $500,000 $400,000 $260,000 1. 20% ? $7,000 ? $100,000 $130,000 2. ? ? 60% $20,000 $(5,000) 3. 4. $600,000 $420,000 ?
Contribution
Margin
per Unit
Net Operating
Units
Variable
Fixed
Income
Case
Sold
Sales
Expenses
Expenses
(Loss)
15,000 $180,000 $120,000
$100,000
$50,000
$32,000
1.......
$8,000
$12,000
$(10,000)
?
?
$10
$13
2.
1p,000
6,000 $300,000
3.
$70,000
4.
?
$100,000
Transcribed Image Text:Contribution Margin per Unit Net Operating Units Variable Fixed Income Case Sold Sales Expenses Expenses (Loss) 15,000 $180,000 $120,000 $100,000 $50,000 $32,000 1....... $8,000 $12,000 $(10,000) ? ? $10 $13 2. 1p,000 6,000 $300,000 3. $70,000 4. ? $100,000
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