Question

Fill in the blanks for each of the following independent cases.

(For entries with a​ $0 balance, make sure to enter​ "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole​ percent.)
Case Revenues Variable Costs Fixed Costs total Costs Operating Income Contribution Margin Percentage
a. $600 $800 $1,600
b. $2,500 $200 $900
c. $500 $300 $500
d. $1,200 $200 25 %

Answer 1

• The correct form to fill the blanks of the following independent cases is:

Case Revenues variable Fixed Total operating contribution

cost cost cost income margin Contribution

a 2400 600 200 800 1600 75% 1800

b 2500 1400 200 1600 900 44% 1100

c 500 300 200 500 0 40% 200

d 1200 900 200 1100 100 25% 300

The below formulas should be used:

• Contribution = Revenues - variable cost.

• Contribution margin = contribution ÷ revenue.

• Operating income = Revenue - total cost

• Total cost = fixed cost + variable cost