Question

EXERCISE 5-11 Missing Data; Basic CVP Concepts [LO5-1, L05-9] 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.) a. Assume that only one product is being sold in each of the four following case situations: Units Sold Contribution Margin per Unit Variable Expenses Sales Net Operating Income (Loss) Fixed Expenses Te Case 1 ........ $50,000 $32,000 2........ 15,000 ? 10,000 6,000 $180,000 $100,000 ? $300,000 $120,000 ? $70,000 ? $10 $13 3........ $8,000 $12,000 $(10,000) $100,000 b. Assume that more than one product is being sold in each of the four following case situations: Average Contribution Margin Ratio Fixed Expenses Case Sales Expenses - IN H Net Operating Income (Loss) $7,000 20% $500,000 $400,000 ? $260,000 N $100,000 $130,000 Q 60% $20,000 $(5,000) > $600,000 $420,000