Cost-Volume-Profit Relations: Missing Data Following are data from 4 separate co
ID: 2516978 • Letter: C
Question
Cost-Volume-Profit Relations: Missing Data
Following are data from 4 separate companies. Supply the missing data in each independent case
Explanation / Answer
Case A
Case B
Case C
Case D
Unit Sales
1,000
800
4200
3000
(2000+1000)
Sales revenue
$20,000
$2400
(800*$3)
$163800
(4200*$39)
$60,000
Variable cost per unit
$10
$2
$14
$8
($20-$12)
Contribution margin
$10,000
(1000*$10)
$800
$1,05,000
(4200*$25)
$36000
(3000*$12)
Fixed Costs
$8,300
$200
($800-$600)
$100,000
$12000
($36000-24000)
Net income
$1700
($10000-$8300)
$600
$5000
$24000
(2000*$12)
Unit contribution margin
$10
($20-$10)
$1
($800/800)
$25
($100000/4000)
$12
Break-even point (units)
170
($1700/$10)
600
($600/$1)
4,000
2,000
Margin of safety (units)
830
(1000-170)
200
(800-600)
200
1,000
Case A
Case B
Case C
Case D
Unit Sales
1,000
800
4200
3000
(2000+1000)
Sales revenue
$20,000
$2400
(800*$3)
$163800
(4200*$39)
$60,000
Variable cost per unit
$10
$2
$14
$8
($20-$12)
Contribution margin
$10,000
(1000*$10)
$800
$1,05,000
(4200*$25)
$36000
(3000*$12)
Fixed Costs
$8,300
$200
($800-$600)
$100,000
$12000
($36000-24000)
Net income
$1700
($10000-$8300)
$600
$5000
$24000
(2000*$12)
Unit contribution margin
$10
($20-$10)
$1
($800/800)
$25
($100000/4000)
$12
Break-even point (units)
170
($1700/$10)
600
($600/$1)
4,000
2,000
Margin of safety (units)
830
(1000-170)
200
(800-600)
200
1,000