**Analysis of Financial Case Situations**The table shown provides a comparative financial analysis for four distinct case situations. Each case involves sales of more than one product and breaks down various financial elements including sales, variable expenses, contribution margin, fixed expenses, net operating income (loss), and contribution margin ratio. Here is an analysis of each case:**Case 1:**- **Sales:** $446,000- **Variable Expenses:** [Data not provided]- **Contribution Margin:** [Data not provided]- **Fixed Expenses:** [Data not provided]- **Net Operating Income (Loss):** $89,700- **Contribution Margin Ratio:** 45%**Case 2:**- **Sales:** $206,000- **Variable Expenses:** $133,900- **Contribution Margin:** [Data not provided]- **Fixed Expenses:** $51,000- **Net Operating Income (Loss):** [Data not provided]- **Contribution Margin Ratio:** [Data not provided]**Case 3:**- **Sales:** [Data not provided]- **Variable Expenses:** [Data not provided]- **Contribution Margin:** [Data not provided]- **Fixed Expenses:** $470,000- **Net Operating Income (Loss):** $73,620- **Contribution Margin Ratio:** 77%**Case 4:**- **Sales:** $306,000- **Variable Expenses:** $76,500- **Contribution Margin:** [Data not provided]- **Fixed Expenses:** [Data not provided]- **Net Operating Income (Loss):** -$1,500 (indicating a loss)- **Contribution Margin Ratio:** [Data not provided]**Explanation:**- **Sales:** Represents the total revenue generated.- **Variable Expenses:** Costs that vary with the level of output.- **Contribution Margin:** Sales revenue minus variable expenses, showing the amount available to cover fixed expenses and profit.- **Fixed Expenses:** Costs that do not change with the level of output.- **Net Operating Income (Loss):** Indicates profitability after subtracting fixed expenses from the contribution margin.- **Contribution Margin Ratio:** Contribution margin expressed as a percentage of sales, reflecting how much each dollar of sales contributes to fixed costs and profit.Note: Some data points are missing and need to be calculated or filled in for a complete financial picture. ### Financial Analysis of Single Product Sales Across Different CasesThis table analyzes the sales performance of a single product in four different scenarios, labeled as Case 1 through Case 4. Each case includes key financial metrics: units sold, total sales, variable expenses, contribution margin, fixed expenses, net operating income (loss), and contribution margin per unit. The figures are structured as follows:#### Case 1- **Units sold:** 8,400- **Sales:** $243,600- **Variable expenses:** $168,000- **Contribution margin:** $75,600- **Fixed expenses:** $90,000- **Net operating income (loss):** $(14,400)- **Contribution margin per unit:** $9#### Case 2- **Units sold:** Not specified- **Sales:** $366,600- **Variable expenses:** Not specified- **Contribution margin:** $34,400- **Fixed expenses:** $163,000- **Net operating income (loss):** Not specified- **Contribution margin per unit:** $14#### Case 3- **Units sold:** 19,300- **Sales:** Not specified- **Variable expenses:** $173,700- **Contribution margin:** Not specified- **Fixed expenses:** Not specified- **Net operating income (loss):** $186,200- **Contribution margin per unit:** $14#### Case 4- **Units sold:** 5,500- **Sales:** $165,000- **Variable expenses:** Not specified- **Contribution margin:** Not specified- **Fixed expenses:** $80,000- **Net operating income (loss):** $(25,000)- **Contribution margin per unit:** $14### Key Observations- **Contribution Margin:** Reflects the profitability of each unit sold. Varies across cases, which affects overall profitability.- **Net Operating Income/Loss:** Indicates financial health post-expenses. Cases 1 and 4 report losses, while Case 3 shows a significant profit.- **Fixed Expenses:** Remain constant regardless of units sold, impacting overall net income based on volume.This analysis provides insights into how different sales volumes and expense structures can affect overall business profitability. It is important for businesses to understand these dynamics to make informed financial decisions.

Required A Required B Assume that more than one product is being sold in each of the four following case situations: (Loss amounts should be indicated by sign.) Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ Case 1 446,000 89,700 45 % $ < Required A Case 2 206,000 133,900 51,000 % $ Case 3 470,000 73,620 77% Required BS $ $ Case 4 306,000 76,500 (1,500) %

Required A Required B Assume that more than one product is being sold in each of the four following case situations: (Loss amounts should be indicated by sign.) Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ Case 1 446,000 89,700 45 % $ < Required A Case 2 206,000 133,900 51,000 % $ Case 3 470,000 73,620 77% Required BS $ $ Case 4 306,000 76,500 (1,500) %

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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PROBLEM 2-18 Schedule of Cost of Goods Manufactured; Income Statement; Cost Behavior [LO2, LO3, LO4, LO5, LO6] Various cost and sales data for Meriwell Company for the just completed year appear in the work- sheet below: E Hicrosoft Excel Ele Edt Vew rcert Fgrmat Iools Rata Wndow elp 12 - BIU2 E17 B $20,000 $40,000 $110,000 $105,000 $125,000 $9,000 $6,000 $70,000 S17,000 $30,000 $500,000 S80,000 A 1 Finished goods inventory, beginning 2 Finished goods inventory, ending 3 Administrative expenses 4 Manufacturing overhead 5 Purchases of raw materials 6 Raw materials inventory, beginning 7 Raw materials inventory, ending 8 Direct labor 9 Work in process inventory, beginning 10 Work in process inventory, ending 11 Sales 12 Selling expenses 13 N MSheeti/Sheet2 / Sheets / Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed. Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare an income statement. 3. Assume that the company produced the…
W. Region E. Region Stock Inc. Darby Corp $ Cost of goods sold 590,000 1,050,000 301,000 200,000 + Operating income (loss) + $ + $ + Cust-level oper. costs 54,110 50,670 35,250 29,600 Total = Total customer-level costs 644,110 1,100,670 336,250 229,600 = || || GA GA CA Now prepare a customer-cost hierarchy report. (Use parentheses or a minus sign to enter an operating loss. Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. = income.) EA Customer Distribution Channels Wholesale Customers Total W. Region E. Region Wholesale Wholesaler Wholesaler Retail Customers Total Retail Stock Inc. Darby Corp
Required A Required B Assume that only one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 Unit sold 8,200 20,800 5,500 Sales $ 237,800 $ 360,000 $ 192,500 Variable expenses 114,800 291,200 Fixed expenses 89,000 173,000 73,000 Net operating income (loss) 37,000 $ 147,800 $ 37,000 Contribution margin per unit $ 14 $ 11
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Unit VI question 4
Exercise 18 -8 (Static) Computing missing amounts in contribution margin income statements LO A1 Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) \table[[Number of units sold, Company A, Company B], [,,,, 1,975, ], [,, otal,,unit, Total, Per unit], [Sales, $, 208, 000, $, 65.00,, ], [Variable costs,, 150, 400,,, 39, 500, ], [Contribution margin,,,,, 43, 450, ], [Fixed costs,,,,,19, 750, ], [ Income, $, 46, 400,,,,]]
Exercise 3-3A (Algo) Contribution margin ratio LO 3-1 Walton Company incurs annual fixed costs of $87,650. Variable costs for Walton's product are $26.00 per unit, and the sales price is $40.00 per unit. Walton desires to earn an annual profit of $52,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. Note: Po Po not round intermediate calculations. Round your final answers to the nearest whole number. Sales in dollars Sales volume in units