Answer:
Results are below.
Explanation:
<u>Traditional format income statement:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 10,000 + 86,000 - 23,000
COGS= $73,000
Sales= 14,000*17= 238,000
COGS= (73,000)
Gross profit= 165,000
Total selling expense= (2*14,000 + 19,000)= (47,000)
Total administrative expense= (3*14,000 + 15,000)= (57,000)
Net operating income= 61,000
<u>Contribution margin income statement:</u>
<u>Total variable cost=</u> 73,000 + 14,000*2 + 14,000*3= 143,000
Sales= 14,000*17= 238,000
COGS= (143,000)
Gross profit= 95,000
Total fixed selling expense= (19,000)
Total fixed administrative expense= (15,000)
Net operating income= 61,000
