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: (For all requirements, Loss amounts should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Required A Required B Assume that more than one product is being sold in each of the four following case situations: Case 3 Case $ $ $ Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin ratio (percent) Case #1 446,000 263,140 248,720 65,860 Case #2 194,000 131,920 55,000 7,080 32 % 299,000 104,650 218,000 (23,650) 474,000 108,660 $ $ $ $ < Required A

Answer 1

--Requirement B

	Case #1	Case #2	Case #3	Case #4
Sales	$446,000	$194,000	$702,000	$299,000
Variable expenses	$263,140	$131,920	$119,340	$104,650
Fixed expenses	$117,000	$55,000	$474,000	$218,000
Net Operating income (loss)	$65,860	$7,080	$108,660	($23,650)
CM Ratio	41%	32%	83%	65%

--Working

	Case #1	Case #2	Case #3	Case #4
Sales	446000	194000	=+(474000+108660)/83%	299000
Variable expenses	=446000*(100-41)%	131920	=702000*(100-83)%	104650
Fixed expenses	=446000-263140-65860	55000	474000	=299000-104650-(-23650)
Net Operating income (loss)	65860	=194000-131920-55000	108660	-23650
CM Ratio	0.41	=+(194000-131920)/194000	0.83	0.65