Question

Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $151,000, its total variable expenses were $79,700, and its total fixed expenses were $56,600. Required: a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. (Do not round intermediate calculations.)

Answer 1

Answer:

See below

Explanation:

Sales

$151,000

Less:

Variable cost

($79,700)

Contribution margin

$71,300

Less:

Fixed cost

($56,600)

Ney profit