Create a contribution margin income statement

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Reference no: EM132817691

Garland Limited gathered the following information for the year ended 31 December 20X9:

Garland Limited

Income Statement

Year Ended 31 December 20X9

Sales revenue $678,000

Cost of sales 413,700

Gross profit 264,300

Operating expenses:

Marketing expenses $83,900

Administrative expenses 57,600

Total operating expenses 141,500

Profit $122,800

Total fixed manufacturing expenses amounted to $210,300. Marketing expenses were 25% variable and 75% fixed. Administrative expenses were 80% fixed and 20% variable.

Problem a) Create a contribution margin income statement.

Problem b) Assuming unit sales increase 15%, calculate the new profit.

Reference no: EM132817691

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