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Calculation of total variable cost and contribution income statement.
During 2007 the company manufactured 120,000 units and sold 145,000 units. Assume the same unit costs in all years. Total variable costs on the company's 2007 contribution income statement will be?
Magic Screen's contribution income statement utilizing variable costing appears below:
Less variable costs:
Selling & Admin
Fixed Selling & Admin
Magic Screen Company Income Statement For the Year Ended December 31, 2007
Magic Screen Company produced 49,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories.
Hint: Variable cost per unit is $0.25
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