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

Case Units Sold Sales Variable Expenses Contribution Margin Per Unit Fixed Expenses Net Operating Income Loss
1 15,000 $180,000 $120,000 $4 $50,000 $
2 4,000 $100,000 $60,000 $10 $32,000 $8,000
3 10,000 $ $70,000 $13 $ $12,000
4 $6,000 $300,000 $210,000 $15 $100,00 $(10,000)

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

Case Sales Variable Expenses Average Contribution Margin Ratio Fixed Expenses Net Operating income (Loss)
1 $500,000 $ 20% $ $7,000
2 $400,000 $260,000 35% $100,000 $40,000
3 $ $ 60% $130,000 $20,000
4 $600,000 $420,000 % $ $(5,000)

We prepared a contribution format income statement for each case, entered the known data, and then computed the missing items.

Part a:

Case                            1

Units Sold                     15000

Sales                                180,000/15000 = $ 12

Variable Expenses         120,000/ 15,000 = $ 8

Contribution Margin        $4*15000= 60,000

Fixed Expenses          50,000

Net Operating Income Loss   $ 10,000

Case                            2

Units Sold                     4000

Sales                                100,000/4000 = $ 25

Variable Expenses         60,000/ 4,000 = $ 15

Contribution Margin        $ 10*4000= 40,000

Fixed Expenses          32,000

Net Operating Income Loss   $ 8000

Case                            3

Units Sold                     10,000

Sales                                200,000/10,000 = $ 20

Variable Expenses         70,000/ 10,000 = $ 7

Contribution Margin        $ 13*  10,000= 130,000

Fixed Expenses         118,000

Net Operating Income Loss   $ 12,000

Case                            4

Units Sold                     6,000

Sales                                300,000/ 6,000 = $50

Variable Expenses         210,000/ 6000 = $ 35 per unit

Contribution Margin        $ 15*  6000=  $ 90,000

Fixed Expenses         100,000

Net Operating Income Loss   $ (10,000)

Part b:

Case                            1

Sales                             500,000  

Variable Expenses       400,000    

Contribution Margin     20% of 500,000 = $ 100,000

Fixed Expenses           93,000

Net Operating Income Loss   $ 7,000

Case                            2

Sales                             400,000  

Variable Expenses       260,000    

Contribution Margin     140,000

Fixed Expenses           100,000

Net Operating Income Loss   $ 40,000

Case                            3

Sales                             250,000  

Variable Expenses      100,000    

Contribution Margin     150,000 ( 60 % of Sales )

Fixed Expenses           130,000

Net Operating Income Loss   $ 20,000

Case                            4

Sales                             600,000  

Variable Expenses       420,000    

Contribution Margin     180,000 (  180,000/600,000 *100 = 30 % )

Fixed Expenses           185,000

Net Operating Income Loss   $ (5,000)

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi