Exercise 5-1

1 Case 1 Case 2 Case 3

Units sold $ 10,100.00 $ 9,900.00 $ 9,000.00
Selling price per unit $ 35.00 $ 35.00 $ 35.00
Variable price per unit $ 20.00 $ 20.00 $ 20.00

Sales $ 353,500.00 $ 346,500.00 $ 315,000.00

Variable expenses $ 202,000.00 $ 198,000.00 $ 180,000.00
Contibution margin $ 151,500.00 $ 148,500.00 $ 135,000.00
Fixed expenses $ 135,000.00 $ 135,000.00 $ 135,000.00
Net operating income $ 16,500.00 $ 13,500.00 $ -

Exercise 5-2