EXERCISE 4-13

Missing Data; Basic Cost-Volume-Profit Concepts 19 LO1, 9 L02]

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 is 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 following four case situations:

Aa

Case	Units Sold	Sales	Variable Expenses	Contribution Margin per Unit	Fixed Expenses	Operating Income (Loss)
	15,000	$180,000	$120,000	?	$ 50.000
	?	$100,000	?	$10	$ 32.000	8.000
3	10,000	?	$ 70.000	$13		$ 12,000
4	6,000	$300.000	?		$100,000	$ (10,000)

b. Assume that more than one product is being sold in each of the following four case situations:

Case	Sales	Variable Expenses	Average Contribution Margin (percentage)	Fixed Expenses	Operating Income (Loss)
	$500,000	$ ?	20%	$ ?	$ 7.000
2	$400,000	$ 260,000	?	$ 100,000	?
3	?	?	60%	$ 130,000	$ 20,000
4	$600,000	$ 420,000	?	?	$ (5,000)

x + onnect x Exercises d.reader-ui.prod.mheducation.com/epub/sn_32120/data-uuid-8b4b6c8156dd464ab3ef3906bee22e59 Aa 3. The selling price increases by $ 1 per unit. fixed expenses increase by $20,000, and the number of units sold decreases by 10%. 4. Variable expenses increase by 60 cents per unit. the selling price increases by 15%, and the number of units sold decreases by 15%. EXERCISE 4-13 Missing Data; Basic Cost-Volume-Profit Concepts [C LO1, 2 LO2] 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 is 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 following four case situations: Case Units Sold Sales Variable Expenses Contribution Margin per Unit Fixed Expenses Operating Income (Loss) 15,000 $180,000 $ 120,000 $ 50,000 2 $ 100,000 $10 $ 32,000 $ 8,000 3 10,000 $ 70,000 $ 13 $ 12,000 4 6,000 $300.000 $ 100,000 $ ( 10,000) b. Assume that more than one product is being sold in each of the following four case situations: Case Sales Variable Expenses Average Contribution Margin (percentage) Fixed Expenses Operating Income (Loss) $500.000 $ ? 20% $ 2 $ 7,000 2 $400,000 $ 260,000 $ 100,000 60% $ 130,000 $ 20,000 $600,000 $ 420,000 $ (5,000) EXERCISE 4-14 Break-Even and Target Profit Analysis [2 LO3, 2) LO4, ( LOS, 2 LOG] New Tech Limited manufactures and sells wireless phone chargers. The product sells for $30 per unit and has a CM ratio of 50%. The company's fixed expenses are $450,000 per year. Required: Page 124 Search