Question

Marano were $57,600 produces and sells a single product. In October, the company sold 2,500 units Its total sales were $161,000, its total variable expenses were $80,700, and is total fxed exp sells 2.400 unts (De not round intermediate b. Redo the company's contribution format income statement assuming that the company

Answer 1

Note : Selling price per unit = $161,000 / 2,500 units = $64.40 ;

Variable cost per unit = $80,700 / 2,500 units = $32.28

Answer a

Contribution Format Income Statement ( unit sold : 2,500 units)

Particular	Amount ($)
Sales ($64.40 * 2,500 units)	161,000
Less : Variable cost ($32.28 * 2,500 units)	(80,700)
Contribution	80,300
Less : Fixed Cost	(57,600)
Net operating Income	22,700

Answer b

Contribution Format Income Statement ( unit sold : 2,400 units)

Particular	Amount ($)
Sales ($64.40 * 2,400 units)	154,560
Less : Variable cost ($32.28 * 2,400 units)	(77,472)
Contribution	77,088
Less : Fixed Cost	(57,600)
Net operating Income	19,488