. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribu
1 answer:
Answer and Explanation:
The preparation of the contribution margin income statement for the year is presented below:
Sales (45,000 units × $16 per unit) $720,000
Less: variable cost (45,000 units × $180,000 ÷ 30,000 units) -$270,000
Contribution margin $450,000
Less: fixed cost -$300,000
Net operating income $150,000
You might be interested in