Up Down Left Right Net sales revenue 1064000 d 525000 j

Up

Down

Left

Right

Net sales revenue

$   1,064,000

$ (d)

$   525,000

$ (j)

Variable Costs

(a)

104,000

315,000

95,700

Fixed Costs

(b)

168,000

200,000

(k)

Operating Income (loss)

89,500

$ (e)

$ (g)

$   49,800

Units Sold

140,000

16,000

(h)

(I)

Contribution Margin per unit

3.80

$ (f)

$   70.00

$   11.00

Contribution Margin Ratio

( c)

80%

(i)

40%

Round the contribution margin per unit to the nearest cent. Use a minus sign or parentheses to enter an operating loss.)

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Net Sales Revenue

$1,064,000

Variable Costs

________

Fixed Costs

________

Operating Income (Loss)

$89,500

Units Sold

140,000

Contribution Margin per Unit

$3.80

Contribution Margin Ratio          _

%

	Up	Down	Left	Right
Net sales revenue	$   1,064,000	$ (d)	$   525,000	$ (j)
Variable Costs	(a)	104,000	315,000	95,700
Fixed Costs	(b)	168,000	200,000	(k)
Operating Income (loss)	89,500	$ (e)	$ (g)	$   49,800
Units Sold	140,000	16,000	(h)	(I)
Contribution Margin per unit	3.80	$ (f)	$   70.00	$   11.00
Contribution Margin Ratio	( c)	80%	(i)	40%

Solution

Total Contribution = Units Sold * Contribution Margin per Unit = 140,000 units * $3.80 per unit = $532,000.

Variable costs = Net Sales Revenue - Total Contribution = $1,064,000 - $532,000 = $532,000

Fixed Costs = Total Contribution - Operating Income = $532,000 - $89,500 = $442,500

Contribution Margin Ratio = Total Contribution / Net Sales Revenue = $532,000 / $1,064,000 = 50 %