Question

In each of the unique scenarios below, compute the missing amounts. Contribution Net Operating Units Variable Margin Fixed Income Scenario Sold Sales Expenses per Unit Expenses (Loss) 5,000 $750,000 $400,000 $250,000 $600,000 $25 $200,000 $(25,000) For units, you must enter your answers in the following format: X.XXX For all items other than units sold, you must enter your answers in the following format: Sxxxx

Answer 1

1. Total contribution margin = Sales - Variable expenses

= 750,000 - 400,000

= $350,000

Contribution margin per unit = Total contribution margin/Number of unit

= 350,000/5,000

= $70

Net operating income = Total contribution margin - Fixed expenses

= 350,000 - 250,000

= $100,000

2. Total contribution margin = Fixed expense - Net operating loss

= 200,000 - 25,000

= $175,000

Number of units = Total contribution margin/Contribution margin per unit

= 175,000/25

= 7,000

Variable expenses = Sales - Total contribution margin

= 600,000 - 175,000

= $425,000

Number of units, scenario 2	7,000
Variable expenses, scenario 2	$425,000
Contribution margin per unit, scenario 1	$70
Net operating income, scenario 1	$100,000

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.