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CVP Analysis

Please help with the following problem.

Calculate the missing amounts for each of the following firms: (Negative amount should be indicated by a minus sign. Omit the "$" and "%" signs in your response.)

Sales Variable Contribution Fixed Operating
Costs Margin Ratio Costs Income (Loss)
Firm A $320,000 ----- 32% $---- $38,300    
Firm B ----- 465,050 ---- 118,000 71,950    
Firm C 134,000 ----- 26% 36,700 ------      
Firm D ----- 59,000 20%  ---- (4,920)   

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Solution Preview

Please refer attached file for better clarity of formulas.

Firm A
Variable Costs=(1-CMR)*Sales=(1-32%)*320000=217600
Fixed Costs=Sales-Variable Cost-Operating ...

Solution Summary

The following solution depicts the steps to find out the values of missing parameters in the given cases.

$2.19