Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The company sold 2,000 units.
Total sales were $163,000
Total variable expenses were $80,900
Total fixed expenses were $57,800.
<u>The contribution margin income statement follows this structure:</u>
Income statement:
Sales
-Total variable cost
= contribution margin
-fixed costs
= net operating income
1) Income statement
Sales= 163,000
Total variable cost= (80,900)
Contribution margin= 82,100
Total fixed costs= (57,800)
Net operating income= 24,300
2) First, we need to calculate the unitary selling price and unitary variable cost:
Selling price= 163,000/2,000=$81.5
Unitary variable cost= 80,900/2,000= $40.45
Sales= 1,900*81.5= $154,850
Total variable cost= (1,900*40.45)= (76,855)
Total contribution margin= 77,995
Total fixed cost= (57,800)
Net operating income= 20,195
