Solution-Prepare a contribution margin income statement

Prepare a contribution margin income statement

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Reference no: EM133189112

Question - Assume firm B only produces a single product. Cost, sales, and production information for the company and its single product is as follows:

Selling price per unit is $98

The direct material per unit is $25

The direct labor per unit is $12

Variable manufacturing overhead cost is $8

Variable operating expenses per unit sold $5

Fixed manufacturing overhead cost in total is $185,000

Fixed operating expenses in total for the year $75,000

Units manufactured is 18,000

Units sold is 15,000

Required -

Q1: Prepare a traditional income statement.

Q2: Prepare a contribution margin income statement.

Reference no: EM133189112

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Prepare a contribution margin income statement

Reference no: EM133189112

Reference no: EM133189112

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