Answer:
Contribution income statement - Assuming that operations are not automated.
Sales (26,000 units at $30 per unit) $780,000
Variable expenses ($409,500/
19,500 × 26,000) ($546,000)
Contribution margin $234,000
Fixed expenses ($180,000
)
Net operating loss $54,000
Contribution income statement - Assuming that operations are automated.
Sales (26,000 units at $30 per unit) $780,000
Variable expenses ($18 × 26,000) ($468,000)
Contribution margin $312,000
Fixed expenses ($180,000 + $72,000
) ($252,000
)
Net operating loss $60,000
Explanation:
A contribution Income Statement Shows the contribution (Sales less Variable Costs).
See the Statements for the Assumptions above.
