Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and...

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Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing

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Answer 1

Answer #1

1) Gross margin income statement

Sales (5000*205)	1025000
Cost of goods sold (35+34+19*5000+215000)	655000
Gross margin	370000
Selling and administrative expense (5000*8+205000)	245000
Net income	125000

2) Contribution margin income statement

Sales (5000*205)		1025000
Less: Variable cost of goods sold
Direct material	175000
Direct labor	170000
Variable overhead	95000
Total Variable cost of goods sold		440000
Manufacturing margin		585000
Variable selling and administrative expense		40000
Contribution margin		545000
Less: Fixed cost
Fixed manufacturing overhead	215000
Fixed selling and administrative expense	205000
Total fixed cost		420000
Net income		125000

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Answer 2

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