Reference no: EM131800003

Problem

The Weezer company is a single product company. The following data is available for the month of March 2014.

Sale price per unit                                                              $30
Number of units manufactured and sold during the month     2,000
Variable manufacturing cost per unit                                    $12
Variable selling and administrative cost per unit                     $4
Fixed manufacturing cost per month                                   $6,000
Fixed marketing and administrative cost per month              $2,000

Company does not maintain finished goods and work in process inventory.

Required: Prepare in good format, a traditional income statement and a contribution margin income statement.

Briefly discuss the difference uses of the traditional income statement and the contribution margin income statement.