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Contribution Margin: Unit Amounts Consider the following information on four independent companies.     A   B   C   D Sales   $10,000   $?   $?   $9,000 Less: Variable costs   8,000   11,700   9,750   ?    Contribution margin   $2,000   $7,800   $?   $? Less: Fixed costs   ?   4,500   ?   900    Operating income   $1,000   $?   $8,000   $2,850 Units sold   ?   1,300   300   500 Price/Unit   $4   $?   $?   $? Variable cost/Unit   $?   $9   $?   $? Contribution margin/Unit   $?   $6   $?   $? Contribution margin ratio   ?   ?   75%   ? Break-even in units   ?   ?   ?   ?

Contribution Margin: Unit Amounts Consider the following information on four independent companies.     A   B   C   D Sales   $10,000   $?   $?   $9,000 Less: Variable costs   8,000   11,700   9,750   ?    Contribution margin   $2,000   $7,800   $?   $? Less: Fixed costs   ?   4,500   ?   900    Operating income   $1,000   $?   $8,000   $2,850 Units sold   ?   1,300   300   500 Price/Unit   $4   $?   $?   $? Variable cost/Unit   $?   $9   $?   $? Contribution margin/Unit   $?   $6   $?   $? Contribution margin ratio   ?   ?   75%   ? Break-even in units   ?   ?   ?   ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Contribution Margin: Unit Amounts

Consider the following information on four independent companies.

    A   B   C   D
Sales   $10,000   $?   $?   $9,000
Less: Variable costs   8,000   11,700   9,750   ?
   Contribution margin   $2,000   $7,800   $?   $?
Less: Fixed costs   ?   4,500   ?   900
   Operating income   $1,000   $?   $8,000   $2,850
Units sold   ?   1,300   300   500
Price/Unit   $4   $?   $?   $?
Variable cost/Unit   $?   $9   $?   $?
Contribution margin/Unit   $?   $6   $?   $?
Contribution margin ratio   ?   ?   75%   ?
Break-even in units   ?   ?   ?   ?
Contribution Margin: Unit Amounts Consider the following information on four independent companies. A B C D Sales $10,000 $? $? $9,000 Less: Variable costs 8,000 11,700 9,750 ? Contribution margin $2,000 $7,800 $? $? Less: Fixed costs ? 4,500 ? 900 Operating income $1,000 $? $8,000 $2,850 Units sold ? 1,300 300 500 Price/Unit $4 $? $? $? Variable cost/Unit $? $9 $? $? Contribution margin/Unit $? $6 $? $? Contribution margin ratio ? ? 75% ? Break-even in units ? ? ? ? Required: Calculate the correct amount for each question mark. Be sure to round any fractional break-even units up to the next whole number. Round variable unit cost and contribution margin per unit to the nearest cent. Round contribution margin ratio to four decimal places. (Express as a decimal-based amount rather than a whole percent.)
Transcribed Image Text:Contribution Margin: Unit Amounts Consider the following information on four independent companies. A B C D Sales $10,000 $? $? $9,000 Less: Variable costs 8,000 11,700 9,750 ? Contribution margin $2,000 $7,800 $? $? Less: Fixed costs ? 4,500 ? 900 Operating income $1,000 $? $8,000 $2,850 Units sold ? 1,300 300 500 Price/Unit $4 $? $? $? Variable cost/Unit $? $9 $? $? Contribution margin/Unit $? $6 $? $? Contribution margin ratio ? ? 75% ? Break-even in units ? ? ? ? Required: Calculate the correct amount for each question mark. Be sure to round any fractional break-even units up to the next whole number. Round variable unit cost and contribution margin per unit to the nearest cent. Round contribution margin ratio to four decimal places. (Express as a decimal-based amount rather than a whole percent.)
A B Sales $10,000 2$ $9,000 Less: Variable costs 8,000 11,700 9,750 Contribution margin $ 2,000 $ 7,800 Less: Fixed costs 4,500 900 Operating income $ 1,000 $8,000 $2,850 Units sold 1,300 300 500 Price/Unit $4 $ Variable cost/Unit $9 Contribution margin/Unit 2$ $6 Contribution margin ratio 0.7500 Break-Even in units %24 %24
Transcribed Image Text:A B Sales $10,000 2$ $9,000 Less: Variable costs 8,000 11,700 9,750 Contribution margin $ 2,000 $ 7,800 Less: Fixed costs 4,500 900 Operating income $ 1,000 $8,000 $2,850 Units sold 1,300 300 500 Price/Unit $4 $ Variable cost/Unit $9 Contribution margin/Unit 2$ $6 Contribution margin ratio 0.7500 Break-Even in units %24 %24
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