Question

On March 31, the end of the first month of operations, Sullivan Equipment Company prepared the following income statement, based on the variable costing concept: Sullivan Equipment Company Variable Costing Income Statement For the Month Ended March 31 Sales (264,000 units) $66,000,000 Variable cost of goods sold: Variable cost of goods manufactured $45,000,000 Inventory, March 31 (36,000 units) (5,400,000) Total variable cost of goods sold 39,600,000 Manufacturing margin $26,400,000 Variable selling and administrative expenses 2,400,000 Contribution margin $24,000,000 Fixed costs: Fixed manufacturing costs $ 7,500,000 Fixed selling and administrative expenses 375,000 Total fixed costs 7,875,000 Income from operations $16,125,000

Answer 1

Answer:

See attached file

Explanation: