Exercise 5-11 Missing Data; Basic CVP Concepts [LO5-1, LO5-9]

Exercise 5-11 Missing Data; Basic CVP Concepts [LO5-1, LO5-9]

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: 

Explanation

a.

	Case #1							Case #2
Number of units sold		8,700	*						14,700
Sales	$	269,700	*		$	31		$	411,600	*		$	28
Variable expenses		174,000	*			20			176,400				12
Contribution margin		95,700			$	11			235,200			$	16	*
Fixed expenses		100,000	*						171,000	*
Net operating income (loss)	$	(4,300)						$	64,200	*

	Case #3							Case #4
Number of units sold		20,000	*						4,300	*
Sales	$	420,000			$	21		$	116,100	*		$	27
Variable expenses		220,000	*			11			73,100				17
Contribution margin		200,000			$	10	*		43,000			$	10
Fixed expenses		83,000							81,000	*
Net operating income (loss)	$	117,000	*					$	(38,000)	*

b.

	Case #1							Case #2
Sales	$	443,000	*		100	%		$	192,000	*			100	%
Variable expenses		248,080			56	%			132,480	*			69	%
Contribution margin		194,920			44	%*			59,520				31	%
Fixed expenses		116,000							67,000	*
Net operating income (loss)	$	78,920	*					$	(7,480)

	Case #3							Case #4
Sales	$	707,000			100	%		$	303,000	*			100	%
Variable expenses		141,400			20	%			87,870	*			29	%
Contribution margin		565,600			80	%*			215,130				71	%
Fixed expenses		475,000	*						227,000
Net operating income (loss)	$	90,600	*					$	(11,870)	*

*Given

Thanks