Cost$-$Volume$-$Profit Relations: Missing Data

Following are data from $4$ separate companies. Supply the missing data in each independent case

Case ACase BCase CCase DUnit Sales$1,000800$Answer $1$Answer $2$Sales revenue$$20,000$Answer $3$Answer $4$$$60,000$Variable cost per unit$$10$$$2$$$10$Answer $5$Contribution marginAnswer $6$$$800$Answer $7$Answer $8$Fixed Costs$$8,100$Answer $9$$$60,000$Answer $10$Net incomeAnswer $11$$$600$Answer $12$Answer $13$Unit contribution marginAnswer $14$Answer $15$Answer $16$$$13$Break$-$even point $($units$)$Answer $17$Answer $184,0002,000$Margin of safety $($units$)$Answer $19$Answer $201001,000$

Round$$contribution margin ratio$$to two decimal places for$$your calculation. Round final answer to nearest dollar.$$

$Answer $1$

$($b$)$ Determine the annual margin of safety in sales revenue.

Use rounded answer from above for calculation.

$Answer $2$

$($c$)$ What is the break$-$even point in sales revenue if management makes a decision that increases fixed costs by $$57,000?$

Use rounded contribution margin ratio $(2$ decimal places; round up$)$for$$your calculation.

$Answer $3$

$($d$)$ With the current cost structure, including fixed costs of $$285,000,$ what dollar sales revenue is required to provide an after$-$tax net income of $$200,000?$

Use rounded contribution margin $(2$ decimal places$)$ for calculation. Round your answer up to the nearest dollar.$$

$Answer $4$

$($e$)$ Prepare an abbreviated contribution income statement to verify that the solution to requirement $($d$)$ will provide the desired after$-$tax income.

Use rounded contribution margin $(2$ decimal places$)$ for variable cost$/$contribution margin computations. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use$$negative signs with any of your answers.

PYRAMID CONSULTING

Income Statement For the Year $2017$SalesAnswer $5$Variable costsAnswer $6$Contribution marginAnswer $7$Fixed costsAnswer $8$Net income before taxesAnswer $9$Income taxes $(36\%)$Answer $10$Net income after taxesAnswer $11$