Question

Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. C. Prepare a contribution margin income statement for the month of September when they will sell 900 units.

Answer 1

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Maple
Answer c	Amount $	Note
Units	900.00	A
Sell price	75.00	B
Sales	67,500.00	C=A*B
Variable cost per unit	30.00	D
Variable costs	27,000.00	E=D*A
Contribution margin income statement	Amount $
Sales	67,500.00	See C
Less: Variable costs	27,000.00	See E
Contribution margin	40,500.00	F
Less: Fixed costs	22,500.00	G
Operating Income	18,000.00	H
Answer d and e	Amount $
Sell price	75.00	See B
Variable cost per unit	30.00	See D
Contribution margin per unit	45.00	I=B-D
Fixed costs	22,500.00	See G
Add: Desired profit	45,000.00	J
Desired Contribution	67,500.00	K
Contribution margin per unit	45.00	See I
Sales volume in units	1,500.00	L=K/I
Sales volume in $	112,500.00	M=L*B
Answer f	Amount $
Sales	150,000.00	N
Sell price	75.00	See B
Units	2,000.00	O=N/B
Variable cost per unit	30.00	See D
Variable costs	60,000.00	P=O*D
Contribution margin income statement	Amount $
Sales	150,000.00	See N
Less: Variable costs	60,000.00	See P
Contribution margin	90,000.00	Q
Less: Fixed costs	22,500.00	See G
Operating Income	67,500.00