For each of the three independent situations below computes the missing amounts S/No. Sales Variable costs Contribution margin per unit Fixed costs Operating income Units sold 1 ? 120,000 20 ? 25,000 4,000 2 180,000 ? ? 45,000 30,000 5,000 3 600,000 ? 30 150,000 90,000 ?

For each of the three independent situations below computes the missing amounts S/No. Sales Variable costs Contribution margin per unit Fixed costs Operating income Units sold 1 ? 120,000 20 ? 25,000 4,000 2 180,000 ? ? 45,000 30,000 5,000 3 600,000 ? 30 150,000 90,000 ?

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

For each of the three independent situations below computes the missing amounts

S/No.	Sales	Variable costs	Contribution margin per unit	Fixed costs	Operating income	Units sold
1	?	120,000	20	?	25,000	4,000
2	180,000	?	?	45,000	30,000	5,000
3	600,000	?	30	150,000	90,000	?

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