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Calculate the missing amounts for each of the following firms:


Units Sold Selling Price Variable Costs Per Unit Contribution Margin Fixed Costs Operating Income (Loss)
Firm A 11,100 $21 $ $96,500 $41,800 $
Firm B 8,100 18 66,100 32,290
Firm C 7.4 3.6 10,200 -6,450
Firm D 4,150 49 40,200 48,970


Sagot :

Answer:

Missing Amounts:

           Units    Selling       Variable    Contribution    Fixed        Operating

            Sold     Price    Costs Per Unit     Margin       Costs     Income (Loss)

Firm A  11,100    $21         $12.31         $96,500     $41,800       $54,700

Firm B  8,100       18            9.84            66,100      32,290          33,810

Firm C 2,684        7.4         3.60            10,200        6,450            3,750

Firm D 4,150      58.67     49.00           40,200      48,970         -35,330

Explanation:

a) Data and Calculations:

           Units  Selling       Variable    Contribution  Fixed        Operating

            Sold    Price   Costs Per Unit     Margin     Costs     Income (Loss)

Firm A  11,100    $21             $                $96,500 $41,800      $

Firm B  8,100       18                                  66,100   32,290        

Firm C                  7.4              3.6            10,200      6,450        

Firm D 4,150                        49               40,200    48,970

Firm A: Variable costs per unit = $12.31 (11,100 * $21 - $96,500)/11,100

Firm A: Operating income = $54,700 ($96,500 - $41,800)

Firm B: Variable costs per unit = $9.84 (8,100 * $18 - $66,100)/8,100

Firm B: Operating income = $33,810 ($66,100 - $32,290)

Firm C: Units sold = 2,684 ($10,200/($7.4 - $3.6)

Firm C: Operating profit = $3,750 ($10,200 - $6,450)

Firm D: Selling price per unit = $58.67 ($40,200/4,150 + $49)

Firm D: Operating loss = $35,330 ($40,200 - $48,970)