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:

(For all requirements, Loss amounts should be indicated by a minus sign.)

• Required A

Assume that only one product is being sold in each of the four following case situations:

	Case #1	Case #2	Case #3	Case #4
Unit sold	8,500		20,500	6,000
Sales	$272,000	$370,000		$198,000
Variable expenses	161,500		184,500
Fixed expenses	89,000	173,000		74,000
Net operating income (loss)		$(25,000)	$215,500	$22,000
Contribution margin per unit		$10	$15

• Required B

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

	Case #1		Case #2		Case #3		Case #4
Sales	$457,000		$198,000				$297,000
Variable expenses			134,640				86,130
Fixed expenses			70,000		466,000
Net operating income (loss)	$52,520				$56,000		$(6,130)
Contribution margin ratio (percent)	36	%		%	75	%		%