LO20-1, LO20-4For each of the six independent situations that follow, compute the missing amounts.EXERCISE 20.5Using contribution margin per unit:a.Cost-Volume-ProfitOperatingIncomeRelationshipsVariableContributionFixedSalesCostsMargin per UnitCostsUnits Sold(1)2$$120,000$20$$25,0004,000(2)180.00045,00030,0005,000(3)600,00030150,00090,000b. Using the contribution margin ratio:VariableContributionOperatingSalesCostsMargin RatioFixed CostsIncome(1)$900,000$720,000%$95,000(2)600,00040%75,000(3)30%90,00060,000

contribution margin per unit = contribution margin / number of units sold contribution margin…

LO20-1, LO20-4 For each of the six independent situations that follow, compute the missing amounts. EXERCISE 20.5 a. Using contribution margin per unit: Cost-Volume-Profit Operating Income Variable Contribution Fixed Relationships Sales Costs Margin per Unit Costs Units Sold (1) 24 $120,000 $20 2$ $25,000 4,000 (2) 180,000 45,000 30,000 5,000 (3) 600,000 30 150,000 90,000 b. Using the contribution margin ratio: Variable Contribution Margin Ratio Operating Income Sales Costs Fixed Costs (1) $900,000 $720,000 $95,000 (2) 600,000 40% 75,000 (3) 30% 90,000 60,000

LO20-1, LO20-4 For each of the six independent situations that follow, compute the missing amounts. EXERCISE 20.5 a. Using contribution margin per unit: Cost-Volume-Profit Operating Income Variable Contribution Fixed Relationships Sales Costs Margin per Unit Costs Units Sold (1) 24 $120,000 $20 2$ $25,000 4,000 (2) 180,000 45,000 30,000 5,000 (3) 600,000 30 150,000 90,000 b. Using the contribution margin ratio: Variable Contribution Margin Ratio Operating Income Sales Costs Fixed Costs (1) $900,000 $720,000 $95,000 (2) 600,000 40% 75,000 (3) 30% 90,000 60,000

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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