Question

Assume that the company produces and sells 92,000 units during the year at a selling price of $7.37 per unit. Prepare a contribution format income statement for the year.

Answer 1

Answer:

1. MS Excel File is attached for the solution. Please find that.

2.                   Contribution income statement for the year

                                                                   $      

         Sales (45000 x 16 )                   720,000

Less: Variable Cost (45,000 x 6)       270,000

         Contribution Margin                 450,000

Less: Fixed Cost                                  300,000

         Net Income                                150,000

Download xlsx

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