Question

Compute the missing amounts in the contribution margin income statement shown below. (Round "Per Unit" answers to 2 decimal places.)

	Company A Company B Number of units sold 2,425 Total Per unit Total Per unit Sales $505,000 $101.00 Variable costs 325,000 135,800 Contribution margin 184,300 Fixed costs 67,900 Net income $117,500

Answer 1

A Company B в Number of units sold company 5,000 2,425 To tal Per Unit Total Per Unit $ 505,000 $101.00 $320,100 $ 132:00 $325,000 $65.00 $135,800 $ 56.00 Contsibution Margin $180,000 $36.00 $ 184,300 $76.00 $ 62,500 $12.50 $ 67,900 $28.00 16 117,500 $23.50 1$ 116,400 |$48.00 Sales lesi Variable costs les: fixed costs Net Income Calculation: company A: contribution Margin = Sales Variable cost = $505,000 $325,000 $180,000 - fixed costs = Contribution Margin - Net Income $ 180,000 - $ 117,500 $62,500 Number of units sold = = Sales & Sales Per Unit $505,000 - $101 5,000 units Variable cost per unit Variable costs Units sold - $325,000 5,000 units = $65

Contribution • Margin Per Unit = Sales Per Unit - Variable costs per unit $10l - $65 = $ 36 fixed costs per unit Fixed costs & Units sold $62,500 + 5,000 units $12.5 B: Sales Net Income per unit Net Income ₃ Units sold = $ 117,500 + 5,000 units = $23.5 Company Variable costs + Contribution margin $135,800 +$ 184,300 € $ 320,100 Net Income = contubation Margin fixed costs $ 184,300 – $67,900 = $116,400 Sales Per Unit $320,100 2,425 units a $ 132 Variable cost per Unit $135,800 + 2,425 units $56 Contribution Margin Per Unit $ 184,300 + 2,425 units $76 fixed costs Per Unit $ 67,900 & 2,425 units $28 Net Income & 116,400 2,425 units & $48